February 28, 2017 / 7:35 AM / 5 months ago

BRIEF-Virgin Money says full-year underlying pretex profit up 33 pct

2 Min Read

Feb 28 (Reuters) - 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 billion.

* 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 £28.1 billion.

* 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 year

* 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 Source text for Eikon: Further company coverage: (Bengaluru Newsroom: +91 80 6749 1136)

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