Virgin Money reports steady growth despite mortgage and business lending slowdown
Virgin Money has reported steady growth in the first three months of its financial year as both lending activity and deposits from existing customers saw an uptick.
Deposits from existing customers rose 1.2 per cent to hit £31bn, despite overall deposits sliding two per cent to £65bn in the quarter.
Unsecured lending from the group meanwhile grew three per cent to hit £5.6bn which bosses said had been driven by a surge in demand for credit cards after the firm rolled out new digital services and unsecured lending products.
The firm saw a slump in business lending however which it said had been tempered by weaker market demand and the slowdown in government-backed lending.
Mortgage lending also fell 0.5pc to £57.8bn in the first quarter which the firm blamed on the end of the stamp duty relief from October, as well as tough competition in the sector.
But performance was buoyed by a strengthening of net interest margins – whichafter driving down the cost of lending to customers. Bosses said that trading in the three months to December 31 had been in line with expectations.
David Duffy, Chief Executive Officer: “Virgin Money’s performance in the first quarter has been strong. Our balance sheet is performing well, asset quality remains robust and we have increased guidance on net interest margin for 2022.
“We are optimistic about the pace of recovery of the UK economy based on growing consumer and business confidence, underpinned by lower unemployment.
“We’ve continued our strong delivery of new digital propositions, including the launch of our fee-free digital business current account and innovative new unsecured lending products, with more to come later this year. We’ve also launched our new working model, ‘A Life More Virgin’, offering full remote-working flexibility, which is leading the industry in providing a digital-led and future-proof work environment that delivers for our customers.”