6th Feb 2024 09:58
(Alliance News) - Virgin Money UK PLC on Tuesday reported slight increases in customer deposits and lending in the first quarter of its financial year, saying the business is tracking in line with full-year guidance.
Total customer lending by the Newcastle, England-based bank was GBP72.83 billion in the three months that ended December 31, up 0.1% from GBP72.75 billion at the end of its previous financial year on September 30, though down 0.3% from GBP73.07 billion a year before.
Of this, mortgages outstanding totalled GBP57.11 billion, down 0.7% from GBP57.50 billion in September and GBP58.40 billion a year before. However, both business and unsecured lending were up on both the quarter and year.
Virgin Money reported "improving sentiment in the mortgage market as interest rates have peaked".
Customer deposits totalled GBP67.31 billion on December 31, up 1.0% from GBP66.61 billion in September and 1.7% from GBP66.15 billion a year before.
Net interest margin in Virgin Money's financial first quarter of financial 2024 was 1.89%, down from 1.91% in financial 2023. Looking ahead, the lender said its NIM guidance for the full year of 190 to 195 basis points remains unchanged, despite expectations for central bank interest rate cuts.
"The group remains confident in its medium-term outlook and is focused on delivering double-digit statutory returns to drive value for shareholders," Virgin Money said.
Chief Executive Officer David Duffy added: "We have made a positive start to the year, with strong [first quarter] results in line with our guidance. We've delivered growth in new accounts, deposits and target lending segments, at stable margins and with ongoing cost efficiencies."
Virgin Money shares were up 1.3% at 151.65 pence on Tuesday morning in London.
By Tom Waite, Alliance News editor
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