Return to statutory profit for Virgin Money UK

Virgin Money UK says it has returned to statutory profit, as it publishes its interim financial report for the six months ended 31 March 2021.

The bank’s underlying profit more than doubled year on year to £245m (H1 2020: £120m), while its statutory pre-tax profit was £72m.

Total underlying operating income was £743m (2020: 817m).

Virgin Money said prudent volume management saw a stable loan book at £72.2bn.

It has also recorded stable mortgages balances at £58.3bn, noting these volumes have been carefully managed through an uncertain backdrop, prioritising margin over volume.

In the same period, business lending declined 0.6% to £8.9bn which includes £1.4bn of Government-guaranteed lending.

And personal lending declined 3.2% to £5.1bn, due to subdued customer demand across the market.

David Duffy, the bank’s chief executive officer: said: “Virgin Money had a strong first half. We doubled underlying profit compared to last year and returned to statutory profit.

“The quality of our loan book remained resilient in the period, and we’ve continued to support customers and look after our colleagues and communities, while safeguarding the bank.

“We’ve made significant strategic progress to transform Virgin Money into a leading digital bank and our rebranding is largely complete.

“We are cautiously optimistic about the improving outlook as the impact of the vaccination programme in the UK delivers positive revisions to economic expectations.

“We’re continuing to manage through what is still an uncertain economic backdrop, but the bank is well placed, with a strong balance sheet, and through ongoing strategic delivery we have a clear path to long-term, improved sustainable returns.”