Nationwide swallows up Virgin Money as chief executive prepares to exit

Chris Rhodes is set to retire in September following the completion of the £2.9bn takeover

The chief executive of Virgin Money is poised to leave the company later this year as the UK lender becomes fully integrated into the Nationwide umbrella.

Chris Rhodes assumed leadership at Virgin Money following its acquisition by Swindon-headquartered Nationwide in late 2024. Prior to this role, Rhodes held the position of finance chief at the UK’s largest building society for more than five years.

On Tuesday, Nationwide announced Rhodes would step down in September 2026.

Dame Debbie Crosbie, chief executive of Nationwide, said Rhodes “steadied and strengthened the Virgin Money business” over the past 18 months.

The building society giant struck a deal for the then FTSE 250-listed Virgin Money in March for approximately £2.9bn.

The firm subsequently secured around £2.3bn from the acquisition, which raised questions about Virgin’s leadership decision to accept a deal that some felt undervalued the bank, which held a £4.4bn book value, as reported by City AM.

The acquisition – finalised at the beginning of October – helped create the UK’s second-largest retail banking provider, ahead of NatWest and behind Lloyds Banking Group.

Nationwide confirmed the completion of a legal mechanism known as Part VII Transfer on Tuesday, which enables a bank to transfer all its customers, accounts, and contracts to another bank without requiring individual consent from every single customer.

his paves the way for Virgin Money and Nationwide to be merged into a single organisation, with suggestions that a replacement for Rhodes will not be necessary.

The procedure encompasses the whole of Clydesdale Bank, which is the legal entity that owned Virgin Money and Yorkshire Bank.

As part of the arrangement, Nationwide therefore assumes responsibility for customer accounts, mortgages, credit cards, data and banking contracts at the former brands.

English business magnate Sir Richard Branson established Virgin Money in March 1995, initially known as Virgin Direct.

Branson secured a windfall of approximately £724m from the transaction with Nationwide, which comprised £414m for his 14.5 per cent stake.

The balance of the sum derived from Nationwide agreeing to pay for the use of the Virgin Money brand – a fee that includes £15m in annual royalties for the first four years as well as a £250m exit fee, which positions the brand to vanish from the high street within six years from the date of the acquisition.