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Virgin Money UK returns to quarterly profit; sticks to annual margin guidance
StockMarketWire.com
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Banking group Virgin Money UK said it returned to profit in the first quarter, without giving a specific number, and reiterated its full-year margin guidance.
Customer lending at the end of December was £72.5 billion, down 0.3% from the end of September.
Customer deposits rose 0.9% to £67.5 million, while credit provisions fell to £735 million, down from £726 million.
A first-quarter impairment charge of £18 million equated to a net cost of risk of 10 basis points, which the company said reflected cautious and unchanged economic assumptions.
'The group has not yet seen any material changes in overall portfolio asset quality, nor been required to make any significant COVID-related specific provisions,' Virgin Money UK said.
'Arrears have increased modestly in the quarter, from the subdued levels seen at the 2020 financial year but remain below historic average levels as customers benefit from the support available.'
Virgin Money UK said is first-quarter net interest margin was stable at 152 basis points.
It reiterated guidance for a margin improvement in the second quarter and for its annual margin to be 'broadly flat' on the 2020 financial year.
'The group returned to statutory profit in the first quarter, continues to perform resiliently, is robustly capitalised, and reaffirms the 2021 financial year guidance and targets set out at the 2020 financial year results,' the company said.
Story provided by StockMarketWire.com
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