Member Article

Virgin Money reports first profit since Northern Rock takeover

Gosforth-based bank Virgin Money has posted underlying profit of £53.4 million in 2013, the first profit since its takeover of failed lender Northern Rock in 2012.

Strong growth in mortgages and savings boosted the Richard Branson-owned bank as retail savings and mortgage balances both increased by 17%.

Virgin also said the acquisition of US-based MBNA’s credit card business had laid the foundations for its own credit card operations.

In 2012 Virgin Money suffered an underlying loss of £2.5 million.

CEO Jayne-Anne Gadhia said: “I am delighted with our performance in 2013. During the year, we maintained the strong momentum that we have established in our core mortgages and savings business, while investing in building the banking capabilities which will enhance our future growth potential.

“In mortgages and savings, we achieved growth well above that seen across the market as a whole, improved net interest margins, controlled cost growth by leveraging our existing infrastructure and maintained a very low level of impairment losses.

“As a result, the underlying contribution from mortgages and savings increased by almost £100 million in the year.”

This was posted in Bdaily's Members' News section by Tom Keighley .