Feb 28 Virgin Money Holdings (Uk) Plc:
* Final results
* Underlying profit before tax increased by 33 per cent to
£213.3 million, from £160.7 million in 2015
* Customer loan balances increased by 19 per cent against
continued strict underwriting principles
* Customer base increased by 15 per cent to 3.3 million at
rate of over 35,000 customers per month, driven predominantly
through digital channels
* Fy mortgage balances increased by 17 per cent to £29.7
* Fy credit card balances increased to £2.4 billion, up 55
per cent, a 3.5 per cent market share.
* Fy retail deposit balances increased by 12 per cent to
* Fy credit cards cost of risk improved to 1.70 per cent in
2016, from 2.00 per cent in 2015, reflecting continued high
quality of book.
* Strong capital position, with a common equity tier 1 ratio
of 15.2 per cent at 31 december 2016.
* Remain well-placed to maintain a solid double-digit return
on tangible equity, somewhat ahead of 12.4 per cent rote
achieved in 2016.
* As a uk retail bank focused on serving domestic customers,
decision to exit eu does not directly impact on our business
* While housing market activity slowed slightly following eu
referendum, demand returned strongly to market in second half of
* There was an increase in remortgage activity following
reduction in bank base rate in august.
* Average loan-to-value (ltv) of mortgage book was 55.4 per
cent, flat year-on-year
* Average ltv of new residential lending was 69.8 per cent
and ltv of new buy-to-let lending was 60.5 per cent.
* Impairments in 2016 rise to 37.6 million pounds from 30.3
million pounds in 2015
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