David Duffy

The pay hike was announced internally earlier this month and will see the majority of the bank’s 7,500 staff receive between 9% and 11% extra in total over two instalments, one in January and the second in July, the Evening Standard reports.

CEO David Duffy and CFO Clifford Abrahams will also receive a January pay boost reflecting a 5% annual salary rise to £1.07m and £630,000 respectively.

The bank revealed plans for further £50m of share buybacks in addition to £75m announced earlier in the year. This comes after profits rose 43% year-on-year from £417m and only £52m was set aside for loan defaults, some £17m lower than the expected £79m provisions.

CEO David Duffy said: “2022 has been a milestone year for Virgin Money. We have good momentum while delivering a strong performance and improved returns for our shareholders.

“We’ve changed the game in purpose-led flexible working to create an engaged, high-performing organisation that’s cost-efficient and agile, which will underpin targeted growth through further digital innovation.”

“While we have solid credit quality across our lending, we are aware that some customers will have to make difficult decisions in this environment, and we are proactively offering them help and support.”