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Virgin Money Group 2013 Results



  • Significant improvement in profitability in 2013, reflecting strong balance sheet growth and higher margins

    • Underlying profit of £53.4 million in 2013, after an underlying loss of £2.5 million in 2012.
    • Statutory profit before tax of £179.4 million in 2013, after £150.6 million in 2012.
    • Total assets up 13%, to £24.6 billion at end of 2013.
    • Net interest margin (NIM) 1.26% in 2013, up from 0.54% in 2012.
  • Strong growth in both mortgages and savings, with improving margins

    • Retail savings balances up 17% to £21.1 billion, significantly in excess of market growth of 5%.
    • Mortgage balances up 17% to £19.6 billion, significantly in excess of market growth of 1%.
    • Gross mortgage lending of £5.6 billion, 12% higher than in 2012.
    • Net lending of £2.8 billion, third largest net mortgage lender during 2013 based on Funding for Lending data.
    • Mortgages and savings NIM improved to 0.95% in 2013, from 0.54% in 2012.
    • Mortgages and savings net interest income increased by 99% to £209.0 million in 2013.
  • Balance sheet strength and quality maintained, move to Basel III is not expected to constrain Virgin Money

    • Core Tier 1 ratio 16.2% at the end of 2013, on Basel II basis.
    • Common Equity Tier 1 ratio 15.3% and leverage ratio 3.7% at the end of 2013, on Basel III basis.
    • Strong liquidity position maintained, loan-to-deposit ratio 96% at end of 2013.
    • Strong asset quality maintained, mortgages over three months in arrears well below CML average.
  • Good progress made in building Virgin Money’s credit card and current account capabilities

    • £1 billion of credit cards acquired from MBNA as the foundation for Virgin Money’s own cards business.
    • First Virgin Money current account being trialled with colleagues ahead of public launch.
    • 250 permanent new jobs created to support growth.
  • Ongoing delivery to customers and communities

    • Customer Net Promoter Score increased significantly during 2013, to one of the highest scores of any UK bank.
    • Only UK bank to resolve 100% of its complaints within 8 weeks.
    • Donations through Virgin Money Giving up 11% to £80.5 million in 2013, approaching £250 million since launch.
    • 4,700 schoolchildren registered for ‘Make £5 Grow’, over 100 new businesses supported through Start-Up Loans.

Jayne-Anne Gadhia, Chief Executive Officer said:

"I am delighted with our performance in 2013. During the year, we maintained the strong momentum that we have established in our core mortgages and savings business, while investing in building the banking capabilities which will enhance our future growth potential.

"In mortgages and savings, we achieved growth well above that seen across the market as a whole, improved net interest margins, controlled cost growth by leveraging our existing infrastructure and maintained a very low level of impairment losses. As a result, the underlying contribution from mortgages and savings increased by almost £100 million in the year.

"At the same time, we completed the acquisition of £1 billion of Virgin Money credit cards from our partner MBNA and made good progress on building our own cards business. We have also developed the infrastructure to support our first current account, which we are now trialling with our colleagues.

"Looking to the future, we have a powerful brand, a strong balance sheet, a strong core business franchise and through our ambition to make ‘everyone better off’, a clear set of values that live throughout our business. We are confident that we can continue to make real progress on our quest to make banking better, growing our business strongly, profitably and responsibly."


Results 2011-132011120122013
(Loss)/profit before tax 
Underlying £m(59.1)(2.5)53.4
Total income£m137.9*269.0384.5
Cost:income ratio%83.0*97.476.5
Core Tier 1 capital ratio (Basel II) %n/a16.416.2
Common Equity Tier 1 capital ratio (Basel III) %n/a15.415.3
Leverage ratio (Basel III) %n/a3.53.7
Customer balances 
Gross mortgage lending £bn3.74.95.6
Mortgage balances £bn13.916.819.6
Credit card balances2£bn--1.0
Savings balances £bn16.218.021.1
Total assets£bn19.621.824.6
Loan-to-deposit ratio%83.693.196.4
Net interest margin3%0.350.541.26

1 2011 results are presented as if Northern Rock plc had been acquired on 1 January 2011 except for * which are the statutory results for Virgin Money Holdings (UK) Limited ahead of the acquisition of Northern Rock plc.

2 Credit card balances include £0.8 billion held on Virgin Money’s balance sheet and £0.2 billion held by MBNA Limited (MBNA) ahead of transfer to Virgin Money.

3 Excluding the impact of fair value accounting adjustments and provision adjustments in respect of the credit card acquisition from MBNA.

2013 Annual Report and Accounts

Virgin Money has today published its Annual Report and Accounts for 2013. These are available at

Media Contacts

Brian Giles 07855 257288
Scott Mowbray 07834 843384
Simon Hall 07855 257081



About Virgin Money

  • Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products.
  • Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business as we aim to offer good value to customers, treat employees and corporate partners well, make a positive contribution to society and deliver a profit to our shareholders.
  • Virgin Money is the official sponsor of the London Marathon, the biggest annual one-day fundraising event in the world. Virgin Money aims to help runners raise over £250 million over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving.

Virgin Money Holdings (UK) Limited. Registered in England and Wales (Company No. 03087587). Registered Office - Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL.