Virgin Money mortgage lending soars

Net mortgage lending at the bank was up 33 per cent on the first nine months of 2015 to £3.5 billion, with £1.3 billion of net mortgage lending in Q3 2016.

Virgin Money said that since the EU referendum, the near-term momentum of the UK economy has “been more positive than initial projections”, with the company experiencing “continued strong customer demand and no evidence of material changes in customer behaviour”.

“The outlook for the UK economy remains uncertain,” it added. “However, the group believes it is well placed to manage through this uncertainty and remains confident of achieving a solid double-digit return on tangible equity for 2017.”

Credit card balances increased to £2.2 billion at the end of September 2016, 41 per cent higher than 2015.

The Newcastle-headquartered company also announced a new partnership with 10x Future Technologies to build its digital bank.

Chief Executive Jayne-Anne Gadhia, said: “I am delighted with the continued strong performance of the business in the third quarter of 2016.

“We delivered a record start to the year for mortgages and we have maintained that momentum following the outcome of the EU referendum. Our savings franchise is thriving and our credit card business continues to go from strength to strength. We remain on track to meet our target of £3 billion of high-quality card balances by the end of 2017.

“I am delighted to be working with 10x Future Technologies, founded by former Barclays CEO Antony Jenkins, to transform our digital offering over the course of the next few years.

“We are particularly pleased that customers continue to build personal relationships with Virgin Money as over 50,000 visitors per month enjoy our seven Lounges.

“We have been encouraged by the relative strength of the UK economy immediately following the EU referendum result although we continue to look forward with caution. We are well placed to manage potential economic headwinds and remain confident of achieving a solid double-digit return on tangible equity for 2017.”