Virgin Money lending nudges lower ahead of Nationwide takeover

Virgin Money reported a dip in third-quarter customer lending and mortgages on Friday ahead of its takeover by Nationwide.

Customer loans declined 0.9% to £72bn, reflecting lower mortgage balances and broadly stable lending balances across target segments of business and unsecured lending combined.

Meanwhile, mortgages were 1.1% lower at £56bn. This was partly due to the impact of higher redemptions given the rate environment, it said.

Unsecured lending rose 1.3% to £6.8bn, driven by ongoing growth in credit card lending, while deposits were up 2.4% to £69.8bn, reflecting strong ISA demand at the start of the new tax year.

Chief executive David Duffy said: "Our strategy remains on track, with financial performance in line with guidance. We delivered continued growth in deposits and unsecured lending in Q3 and remain focused on developing innovative new products for customers and maintaining good momentum into Q4.

"The acquisition by Nationwide is progressing as anticipated with the recent CMA clearance, and we expect it to complete in the final quarter of the calendar year."