Virgin Money remains 'strong' in first quarter trading

Retail bank Virgin Money released a trading statement on its first quarter on Tuesday, claiming continued “strong progress” as gross mortgage lending reached £2bn for a market share of 3.4%.

The FTSE 250 company said net mortgage lending was £0.9bn, for a market share of 12.3%, while credit card balances stood at £2.7bn as customer behaviour and arrears levels were stable.

Actual balances stood at £30.68bn for mortgage lending, up 3%, while credit card balances were 8% higher at £2.65bn and deposits were up 3% at £28.98bn.

It said its net interest margin remained in line with that reported at the end of the 2016 financial year, and it reaffirmed its full-year guidance for 2017.

Virgin Money also noted its receipt of the “Best Mortgage Lender” accolade at the Mortgage Strategy awards, as well as the highest rank for a high street bank in customer satisfaction at the British Bank Awards.

“I am delighted with the ongoing momentum and performance of the business so far in 2017,” said chief executive Jayne-Anne Gadhia.

“Our customer-focused strategy of growth, quality and returns continues to deliver excellent results and demonstrates the benefits of our low-risk business model, strong balance sheet and ongoing focus on operational excellence.”

Gadhia said Virgin Money’s mortgages and savings business continued to “flourish” with gross mortgage lending of £2bn and a £0.9bn increase in deposits during the quarter.

“Whilst maintaining our strong focus on asset quality, credit card balances grew by £0.2bn to £2.7bn.

“Our approach, including the strict and consistent application of underwriting standards, continues to support a low and stable cost of risk.”

The bank’s focus on customer service also led to new highs in customer satisfaction, Gadhia explained, with its overall net promoter score improving to +39, making Virgin Money “one of the best-rated” retail banks in the UK.

“We remain committed to delivering growth, quality and returns and to ensuring our strategy delivers long-term success for the benefit of all of our stakeholders.”