Virgin Money sees slight lending growth, shares unfazed

Virgin Money (LSE: VMUK) has reported a slight 0.1% rise in total customer lending, to £72.83 billion, in its fiscal first quarter to December 31st. The update comes amid “improving sentiment in the mortgage market,” according to interim CEO David Duffy.

In the three months to end-December, Virgin Money saw its mortgage loans outstanding dip 0.7% to £57.11 billion. However, both business and unsecured lending volumes were higher over the quarter and versus last year.

The FTSE 250 bank also grew customer deposits by 1.0% in the period, to £67.31 billion. Its net interest margin – a key measure of lending profitability – held steady at 1.89% even as the prospect of interest rate cuts loom.

Read More News:
BP sticks to buybacks despite profit slide

Virgin Money said it “remains confident” in its medium-term outlook, targeting double-digit statutory returns for shareholders. Earlier gains for Virgin Money’s share price were pared back in late morning trade, with the stock down 20% over the last 12 months.

“We have made a positive start to the year, with strong [first quarter] results in line with our guidance,” Duffy added on the earnings update call. “We’ve delivered growth in new accounts, deposits and target lending segments, at stable margins and with ongoing cost efficiencies.”

At the time of writing VMUK was trading at 150.90 pence, up 0.80% on the day.