The merger of the Yorkshire and Chelsea building societies completes today (1 April), creating a second major force in the building society sector.

The enlarged Society will be known as Yorkshire Building Society, with the Chelsea Building Society name being retained and operated as a separate and distinct brand within the Yorkshire Group.

It will have assets of £36 billion, 178 branches and 2.8 million members.

The merger, which was approved by an overwhelming majority of members from each society in January, will provide consumers with a secure and credible alternative to the high street banks.

The enlarged Yorkshire will continue to be owned and run for the benefit of its members and branches will remain in all communities where either the Yorkshire or the Chelsea currently has a presence.

Iain Cornish, who is chief executive of the enlarged Yorkshire Building Society, said, ‘This is an exciting day in our societies' histories, heralding the beginning of a new chapter. Our focus now is on successfully integrating the two organisations, which we anticipate will take between 12 and 18 months.

‘I am also pleased to report that in the period 1 January to 28 February 2010, the combined performance of the two societies has delivered a pre-tax profit, while our lending increased by over 200 per cent compared to the same period last year. This performance is ahead of our expectations and as the benefits of the merger are realised our ability to deliver value to members will continue to increase.’