5th Mar 2015 08:51
LONDON (Alliance News) - Virgin Money Holdings (UK) PLC, the bank set to join the FTSE 250 index after going public in November 2014, Thursday reported a jump in pretax profit from operating activities, as higher income offset the cost of floating on the London Stock Exchange.
In a statement, Virgin Money said it made a GBP86.8 million pretax profit from operating activities in 2014, compared with GBP42.2 million in 2013. Net interest income, effectively the difference between what the bank makes on lending and the cost of paying interest to savers, rose to GBP367.3 million from GBP311.2 million, bolstered by better margins and growth in mortgage balances.
This drove revenue up to GBP438.3 million from GBP383.0 million, while operating expenses rose to GBP351.5 million from GBP340.8 million due to the GBP12.6 million of fees paid for floating on the London market.
Net profit fell to GBP8.7 million from GBP179.0 million, largely due the prior year's figures being driven up by a GBP203.4 gain on the sale of Virgin Money Cards Ltd to MBNA Ltd, part of Bank of America, when Virgin Money also acquired GBP1 billion of credit card assets from MBNA.
Virgin Money shares were up 5.0% at 335.00 pence on Thursday morning, well ahead of the 283 pence paid by investors that bought shares under its IPO.
By Samuel Agini; [email protected]; @samuelagini
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