Virgin Money UK PLC Reports Little Change in First-Quarter Performance, Business Division Picks Up
Virgin Money UK PLC has released its first-quarter performance report, revealing minimal changes in its underlying performance. While there was a drop in mortgage lending, the company saw a significant pickup in its Business division.
Total lending for the first quarter amounted to £72.83 billion, showing a slight decline of 0.3% compared to £73.07 billion from the same period last year. Mortgage lending experienced a 2.2% decrease, reaching £57.11 billion, while lending to businesses increased by 6.7%, totaling £9.02 billion.
Customer deposits showed positive growth as they rose by 1.7% to £67.31 billion, compared to £66.15 billion in the previous year. The net interest margin remained steady at 1.89%.
However, Virgin Money reported that arrears trends remained consistent with expectations. Credit card arrears continued to gradually increase, aligning with projections.
The company also revealed that it booked a £64 million impairment charge during the first quarter, leading to an increase in provisions which now stand at £639 million.
CEO David Duffy expressed confidence in the company’s positive start to the year. He mentioned that they achieved growth in new accounts, deposits, and target lending segments, all while maintaining stable margins and ongoing cost efficiencies.
Virgin Money’s Tier 1 ratio, a measure of a bank’s financial strength, declined to 14.0% from 15.0% in the previous year.
It is worth mentioning that the company’s performance report addressed the interests and needs of its target audience, providing relevant information about lending, arrears trends, deposits, and cost efficiencies.
In conclusion, Virgin Money UK PLC reported a relatively stable first-quarter performance, with a decline in mortgage lending countered by growth in its Business division. Despite challenges such as increasing credit card arrears, the company remains optimistic about their start to the year, emphasizing their focus on account growth, deposits, and cost efficiencies.
