Virgin Money's mortgage lending pie grows | Fin24
  • New Notes

    Long queues have formed in Harare after Zimbabwe released new bank notes and coins.

  • Open Book

    Former President Jacob Zuma says the public protector can access his tax records.

  • SAA Strike Proposal

    The flag carrier's acting CFO says a strike could destroy the struggling airline and all its jobs.


Virgin Money's mortgage lending pie grows

May 01 2015 13:30

London - British bank Virgin Money Holdings (UK) said gross mortgage lending jumped 34% in the first quarter, helping it win a 3.6% share of the UK mortgage market.

The bank, backed by founder Richard Branson and US financier Wilbur Ross, said it started the second quarter with a strong mortgage pipeline and continued to expect net interest margins of up to 160 basis points in 2015.

"We have reasonably been able to achieve a 3-3.5% mortgage lending market share till date, which is at the top end of our expectation outlined at the time of the float," chief executive Jayne-Anne Gadhia, the first female CEO of a listed British bank, told Reuters.

Gross mortgage lending rose to £1.6bn ($2.46bn) while net mortgage lending increased 82 percent during January-March to £664m.

Mortgage balances at March 31 were £22.6bn, up 3% from end-2014.

"We continue to be positive about growth prospects for the franchise and the ability to meet its targets given the low reliance on base rate rises to achieve NIM growth," Canaccord Genuity said in a note.

The Newcastle-based lender's gross mortgage lending share is based on Bank of England (BoE) data for January and February and the Council of Mortgage Lenders estimate for March.

Lending to British consumers jumped in March by its biggest amount since before the financial crisis and business borrowing showed its strongest rise in at least four years, the BoE said.

Virgin Money, which went public in November, has been looking to challenge Britain's big lenders - Lloyds Banking Group, Royal Bank of Scotland, Barclays and HSBC Holdings.

Spanish bank Sabadell's offer for TSB Banking Group, a rival to Virgin Money, has fuelled expectations of consolidation among smaller banks as they strive to gain the scale required to take on larger rivals.

OneSavings Bank Plc also said in March that it was open to takeover offers and was hoping for more consolidation.

CEO Gadhia, however, declined to speculate on any possible acquisitions.

"We don't have any particular imperative at this point in time to look at anything other than strongly continuing to grow organically," she told Reuters.

virgin money


Read Fin24’s Comments Policy publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote