Virgin Money said it had returned a “pretty strong result in a difficult environment” though profits dipped as it put aside £52m for expected loan losses in the cost-of-living crisis.
The bank - which has offices in Newcastle, Glasgow and Leeds - has issued full year results for the year to September 30 showing total underlying operating income increasing 12% to £1.755bn. But underlying pre-tax profits fell slightly to £789m, down 1% from £801m the previous year.
The company said it had put aside £52m to cover possible borrower defaults as the UK faces into a prolonged recession due to the cost crisis, while the previous year it released £131m of loan loss impairments built up during the pandemic. Virgin Money said it had not yet seen signs of an increase in borrowers defaulting but is keeping a buffer of provisions due to the worsening economic outlook.
