Return to growth in lending at Virgin Money UK

Statutory pre-tax profits have risen in a “milestone year” at Virgin Money UK in the bank’s full year results for 2022.

The bank’s overall lending book returned to growth this year, with improved momentum in mortgages in H2. Overall lending growth rose 0.8% in 2022 to £72.6bn.

Virgin Money UK has reported statutory pre-tax profits for the year of £595m (2021: 417m) and an underlying net interest income of £1.6bn (2021: £1.4bn)

David Duffy, chief executive officer, said: “”2022 has been a milestone year for Virgin Money. We have good momentum while delivering a strong performance and improved returns for our shareholders.

“Across key portfolios, there are currently limited signs of credit concerns and overall arrears remained low during the period.

“However, the Group recognises the potential affordability issues that higher living costs will cause for households and is ready to continue to support customers, as was the case throughout the pandemic.

“The Group has tightened its affordability and underwriting criteria for new customers across all lending categories to account for higher levels of inflation.”

Virgin Money UK adds that during the period it launched a cost of living hub to support customers with money saving suggestions, budgeting tools and links to external resources.

The bank says it has also continued to support its own staff, with a £1,000 cost of living allowance provided to the majority of employees in August.