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Virgin Money interim results

ended 04. May 2023

Virgin Money has just published its interim results, which can be seen >> here <<. Any thoughts on this, send them across ASAP as this story is BREAKING. Some key points below.

  • Overall lending stable (0.2)%; Mortgages (0.8)% to £57.7bn given lower market activity; Unsecured (0.2)%, including moderated growth in credit cards +1.9%; Business lending +4.2% as growth in BAU balances offset a reduction in Government lending
  • Impairment charge of £144m (CoR: 40bps), driven primarily by provision build from higher modelled ECL, including updated macroeconomics and credit bureau data in anticipation of an increase in arrears as the credit cycle continues to normalise
  • Call waiting times down by c.75% compared to the position at FY22, following investment in resource to support service

2 responses from the Newspage community

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Editor
Riz Malik
Independent Financial Adviser at R3 Wealth
Using information from the credit reference agencies as well as their own models, Virgin Money is taking precautions for a possible increase in arrears and expected credit loss. Other banks and lenders will be doing exactly the same as they plan for the worst. Their credit card business has experienced growth, and the expansion of unsecured lending is likely to become a prevalent trend in the following quarters. With higher interest rates and the rising cost of living, credit card usage and defaults are expected to increase, leading to further reductions in lending options and arrears. Unless there is a reversal in interest rates or the UK economy receives a major stimulus, turbulent times lie ahead.
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Gary Bush
Financial Adviser at MortgageShop.com
Virgin Money highlights a decrease in call waiting periods but doesn't confirm the underlying data needed, namely what is the average call waiting time? With fewer high street branches, the big financial institutions need to up their game in serving the great unwashed. Their call and live chat centres should be massively expanding to deliver zero waiting times.