Scotland business

Virgin Money posts sharp rise in pre-tax profits

Close up of Virgin Money logos on branch Image copyright PA
Image caption Virgin Money's underlying pre-tax profits rose by 33% last year

Virgin Money has posted a sharp rise in profits on the back of strong growth in its core mortgages, savings and credit card businesses.

The Edinburgh-based bank's underlying pre-tax profit increased by 33% last year to £213.3m.

Gross mortgage lending was up 12%, at £8.4bn, giving the bank a 3.4% share of the UK mortgage market.

However, its impairment charges rose by £7.3m to £37.6m, with most of the rise coming in its credit card business.

The bank said that reflected increased credit card lending, which climbed by 55% to £2.4bn.

Meanwhile, retail deposit balances were up by 12%, at £28.1bn.

Virgin Money's overall customer base increased at a rate of more than 35,000 customers per month, to reach 3.3 million.

The lender said that rise was driven "predominantly" through digital channels.

Chief executive Jayne-Anne Gadhia said: "We continue to target high-quality lending growth and the combination of strong new mortgage lending and improved customer retention resulted in 17% growth in mortgage balances to £29.7bn, significantly outpacing the market.

"Our credit card business continues to flourish and 55% growth in prime credit card balances to £2.4bn means we remain well-placed to reach our target of £3bn high-quality credit card balances at the end of 2017.

"The performance of our Essential current account was particularly strong and customer balances increased more than fivefold over the year."

Related Topics

More on this story

Related Internet links

The BBC is not responsible for the content of external Internet sites