Virgin Money reaffirms 2018 guidance, Q1 mortgage balances rise

Virgin Money posted a jump in its first-quarter mortgage book on Tuesday as it reaffirmed its 2018 guidance.

Mortgage balances were up 10.4% to £33.9bn in the first quarter, while deposits rose 7.4% from the same period a year ago to £31.1bn and credit card balances increased 13.9% to £3.02bn.

Meanwhile, mortgage lending came in at £1.4bn, down from £2bn the year before but in line with guidance.

Chief executive officer Jayne-Anne Gadhia said: "Our customer-focused strategy of growth, quality and returns continues to drive strong business performance. We have also made good progress in delivering on the strategic initiatives we announced last year.

"We launched our SME deposit account in January and look forward to additional product launches later in the year. We have seen a stronger than expected customer response to the launch of our first Virgin Atlantic frequent flyer cards, demonstrating the strength of customer affinity with the Virgin brand. And we continue to make good progress in the development of our digital bank.

"We remain on track to deliver on the targets we set at the end of last year."