Virgin Money has improved its FY underlying pretax profit, boosted its total income and hiked both its total assets and liabilities.
For the 12-month period, the bank booked underlying pretax profit of £213.3m, from £160.7m. Total income was £586.9m, from £523.5m, including a net-interest income element of £519.0m, from £456.1m.
“Against the backdrop of the UK’s decision to leave the European Union and the resulting economic and political uncertainty, we continued to focus on providing outstanding service to our customers and intermediaries, growing our balance sheet carefully, protecting asset quality and delivering solid double digit shareholder returns,” said Virgin Money in a statement.
“We protect our unique position as a low risk UK retail bank, unburdened by legacy conduct issues, with a far-sighted and data driven approach to risk management and asset quality,” it said.
Its low-cost of risk at 13 basis points was supported by its prudent risk appetite, consistent underwriting and rigorous use of credit data analytics as well as the benign economic environment, said Virgin Money.
“Growth in mortgage and credit card lending was delivered without compromising asset quality, which remained within our risk appetite. Total customer loan balances grew by 19 per cent and our portfolios demonstrated stable or improving trends across a variety of credit metrics year-on-year.”
Looking ahead, Virgin Money said said its low-risk business model and strong balance sheet, combined with a continued focus on operational excellence, including strong cost and risk management, meant it remained well positioned to continue to grow in a wide range of market conditions.
Total assets weighed in at £35.06bn, while total liabilities were at £33.4bn. Its net-interest margin was 1.6%, from 1.65%, while the Common Equity Tier 1 ratio was 15.2%, versus 17.5%.
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