Virgin Money’s 2015 profit soars 53% to £160.3m

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Virgin Money’s 2015 UK profit before tax soared by 53 per cent to £160.3m from £104.8m in 2014.

The firm’s total income was £523.1m, up 19 per cent on 2014’s £438.2m.

Virgin Money’s 2015 accounts say it is carrying out a study into personal current accounts and is eyeing an expansion into this market.

Currently Virgin’s only PCA is a basic bank account product.

The firm’s 2015 retail deposit balances rose to £25.1bn, up 12 per cent on 2014.

Virgin Money’s mortgage balances increased to £25.5bn, up 16 per cent on the previous year.

Virgin’s 2015 gross mortgage lending was £7.5bn, while net lending was £3.6bn.

Virgin Money chief executive Jayne-Anne Gadhia says: “Growth in our mortgage book outpaced the market as we continued to support demand for housing in the UK. Our savings franchise continued to flourish and deposit balances are now higher than at any point in our history.

“We will continue to put our customers at the heart of everything we do and look to the future with confidence.”

The firm is still on the lookout for acquisition deals, according to its accounts.

The lender says it believes buy-to-let mortgages will continue to support the demand for private rented accommodation.

Its 2015 accounts say: “Our mortgage business is comprised of 83 per cent residential and 17 per cent buy-to-let mortgages and our buy-to-let lending is high-quality. We do not expect the new tax regulations for buy-to-let landlords to have a material impact on our business.”

The Virgin Money board is recommending a final dividend of 3.1p per ordinary share.

The total dividend for the year will be 4.5p per ordinary share.