Virgin Money UK flags higher cost-to-income ratio in second half

June 13 (Reuters) – Virgin Money UK (VMUK.L), opens new tab on Thursday warned of a higher cost-to-income ratio in the second half of the year, as the British lender delayed certain restructuring plans due to an all-cash takeover proposal from building society Nationwide.

The cost-to-income ratio is a key measure of efficiency where lower is better.

The impact of inflation and investments will only be partially offset by the company’s cost-savings programme, as some restructuring has been deferred due to the proposed acquisition by Nationwide, representing further headwinds relative to the first half, CEO David Duffy said.