Nationwide Building Society chief executive Joe Garner and chair David Roberts will both step down, in a major shake-up at the UK’s largest mutual.   

The firm says Garner, who led the business for five years, “asked the board to commence the process of finding his successor”, in a stock exchange announcement.

It adds: “Joe believes that an orderly transition will give new leadership the strategic optionality to build on this success and take the society on to the next phase of its development.”

Garner, 52, joined the business in 2016 from BT Group where he was chief executive of its cable unit Openreach.

Under his tenure, the mutual has grown its membership by 2 million members to over 16 million and returned nearly £3bn in member financial benefit. 

It has also grown its stock of residential mortgages by £28bn and in 2020 the firm hit its long-term target of holding 10% of UK current accounts.  

The move comes as Nationwide confirmed that its chair David Roberts asked the board to find a successor for him earlier this year, although Sky News reported that Roberts would leave the role he took up in 2015 earlier this month.

Nationwide says that Kevin Parry, its current senior independent director, has been appointed deputy chair and chair. Parry is currently chair of Royal London Mutual Insurance Society.

It adds: “The board’s expectation is for Kevin to assume the role of chair by March 2022 and, as chair elect, he will lead the process to appoint the chief executive’s successor.” 

Nationwide chair David Roberts says: “Joe has made an outstanding contribution as leader of Nationwide. 

“He has led the Society through the challenges of Brexit and Covid, and we have emerged in robust financial health able to focus on supporting our members as the country rebuilds from the effects of the pandemic. 

“Over the last six years, the growth in our membership, mortgage lending and deposits aligned with our consistently superior customer service is testament to Joe’s focus on delivering the things that are important to our members. 

Nationwide chief executive Joe Garner adds: “I believe that the society is in excellent health with a loyal membership and great commitment to working for a mutual organisation that has the interests of society and its members at its heart. 

“The foundations we’ve laid down in recent years will enable my successor to continue to grow the society and ensure we are ready to meet the future needs of our members. 

“Until that point, I am absolutely focused on continuing to lead and deliver on our priorities.

Nationwide senior independent director Kevin Parry says: “There will be a transitional period into the role, but I’d like to thank David at this point for his dedication and commitment to the Society over the last seven years. 

“It is in no small part thanks to him, and to Joe, that we move into the future with confidence and certainty.”