Virgin Money swings to profit as it rules out plans for imminent IPO
Tuesday 04 March 2014
Two years after its takeover of Northern Rock, Virgin Money has swung out of the red and firmly into the black.
The major challenger bank in the UK, Virgin is set to launch its first current account this year and is eyeing a multi-billion-pound stock market flotation — probably for next year.
Chief executive Jayne-Anne Gadhia said: “I can’t rule in or rule out flotation this year.
“It is something that we want to do eventually but we have not appointed bankers to advise on it yet.”
Virgin swung from an underlying loss of £2.5 million in 2012 to a profit of £53.4 million last year. It grew its savings deposits by 17 per cent to £21.1 billion which was well ahead of the UK market which grew by 5 per cent. A similar 17 per cent rise in the mortgage book to £19.6 billion also outstripped the wider market’s growth of 1 per cent.
Virgin said it now had a “fortress balance sheet” with all the key ratios well above the Basel III levels required by regulators.
Virgin’s net interest margin rose from 0.54 per cent to 1.26 per cent boosted in part by its taking full control of the £1 billion credit-card business it used to run jointly with MBNA. Virgin Money today published a full report and accounts as part of preparations for the float.
These disclose that Gadhia’s pay and bonus package jumped from £883,000 to £1.19 million last year and that her base salary will rise 16 per cent to £637,000 this year. All the bank’s 2,750-plus staff were also told today that they will be getting a 5 per cent pay bonus for their work last year.
- 2 Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
- 3 Russian girl takes her own life after parents find pornography on her computer
- 4 Ball pool for adults opens in London
- 5 Amal Clooney gives excellent response to fashion question at European Court of Human Rights
Saudi preacher who 'raped and tortured' his five -year-old daughter to death is released after paying 'blood money'
Kim Kardashian on Bruce Jenner's 'story': 'We support him no matter what, and I think when the time is right, he'll talk'
Michelle Obama highlights harsh restrictions faced by Saudi women after meeting King Salman without wearing a headscarf
Russian girl takes her own life after parents find pornography on her computer
Ball pool for adults opens in London
9 reasons Greece's experiment with the radical left is doomed to failure
'We would evict Queen from Buckingham Palace and allocate her council house,' say Greens
Have we reached 'peak food'? Shortages loom as global production rates slow
Greece elections: Syriza and EU on collision course after election win for left-wing party
British Muslim school children suffering a backlash of abuse following Paris attacks
British grandmother Lindsay Sandiford faces execution by firing squad in Indonesia
iJobs Money & Business
£13000 per annum: Recruitment Genius: This Pension Specialist was established ...
£23000 - £26000 per annum + Benefits: Ashdown Group: Market Research Executive...
£25000 - £35000 per annum: Recruitment Genius: A Technical Report Writer is re...
Competitive salary & benefits!: MBDA UK Ltd: MBDA UK LTD Indirect Procurement...