- Underlying profit before tax increased by 10 per cent to £141.6 million
- Statutory profit before tax increased to £127.2 million,
- Underlying total income increased by 5 per cent to £343.0 million
Virgin Money have reported a 10 per cent increase in underlying profits for the half year to 30 June 2018.
Profits for the second half of the financial year were £141.6 million, an increase of 10.1% from the first half of the year.
Statutory profit before tax increased to £127.2 million, compared to £123.8 million in the first half of the year.
Jayne-Anne Gadhia, Chief Executive said: “I am delighted to report that our customer-focused strategy of growth, quality and returns continued to drive strong financial and operational performance during the first half of the year. We also made good progress in delivering on our strategic initiatives.
“As a result of our disciplined approach to growth across our core markets and rigorous management of our cost base, underlying profit before tax was up 10 per cent to £141.6 million, our cost:income ratio improved to 49.9 per cent and our return on tangible equity was strong at 14.2 per cent.
“We continue to maintain a strong balance sheet, as shown in our common equity tier 1 ratio of 16.3 per cent. This benefited from recent changes to our capital models to ensure they fully reflected the excellent credit quality of our lending portfolios.”
Merger with CYBG Plc
The increase in underlying profits comes hot on the heels of the proposed merger with Clydesdale and Yorkshire Bank (CYBG PLC) at a value of £1.6 billion.
Commenting on the proposed merger Virgin Money’s Chief Executive said: “The recommended offer made by CYBG for Virgin Money in June reflects confidence in our strategy, our track record of delivery and the complementary models of the two businesses and will accelerate the delivery of our strategic objectives.”
Virgin Money was founded in 1995 by Richard Branson and currently has operations in the UK, Australia and South Africa.