Virgin Money returns with profit with lower provisions for defaulting loans

Virgin Money returns with profit with lower provisions for defaulting loans

Its net interest margin (NIM) – a key measure of profitability – dipped to 1.56% from 1.62%, as record low interest rates set by the Bank of England hurt challenger banks, who rely on margin on lending the most. Virgin Money said the vast majority of its customers who were on payment holidays have resumed payments. Larger lenders offer other financial services, such as wealth management or investment banking, which have cushioned the hit to margins from low interest rates.

While big banks including Lloyds (LLOY.L) and HSBC (HSBA.L) have released provisions due to the better-than-feared economic outlook, smaller lenders are yet to follow suit. Virgin Money took an impairment charge of 38 million pounds in the half-year period, much lower than the 232 million pounds booked a year earlier.

Virgin Money’s rival Metro Bank (MTRO.L) last week said it was starting to see improvement across its loan book as restrictions eased, but gave no update on provisions. read more The bank, formed from the merger of Virgin Money and CYBG, reported pre-tax profit of 72 million pounds ($100.12 million) for the six months ended March 31, compared to a 7 million pound loss a year earlier when it made hefty provisions for potential soured loans.

Source www.reuters.com Our Standards: The Thomson Reuters Trust Principles.

($1 = 0.7192 pounds) Still, Virgin Money guided NIM would be around 1.60% for the full year, while forecasting costs of less than 890 million.

The News Highlights

  • Virgin Money returns with profit with lower provisions for defaulting loans
  • Check the latest News news updates and information about business, finance and more.
Disclaimer: If you need to edit or update this news from compsmag then kindly contact us Learn more

For Latest News Follow us on Google News


Latest Headlines
  • Show all
  • Trending News
  • Popular By week
505 is releasing a new game from MercurySteam, the creators of Metroid and Castlevania

This year, the full Rocket League game experience will be available on mobile devices

According to documents uncovered by The Verge (via Android Police), Epic has a second Rocket League Project in the works that includes mobile. The first is ...
Dine Brands Appoints Vance Chang as Chief Financial Officer;  Allison Hall is named senior vice president and chief accounting officer

Dine Brands Appoints Vance Chang as Chief Financial Officer; Allison Hall is named senior vice president and chief accounting officer

Source www.businesswire.com Based in Glendale, California, Dine Brands Global, Inc. (NYSE: DIN), through its subsidiaries, franchises restaurants under both ...
Hemet's lawyers conspired to steal money for the Los Angeles children's hospital - San Bernardino Sun

Hemet’s lawyers conspired to steal money for the Los Angeles children’s hospital – San Bernardino Sun

The petition identified the hospital as St. Jude Research Hospital in Los Angeles. The trust written by Thompson gave him the authority to appoint and manage a ...
Conneaut praises nurses, UH, health department |  Local News

Conneaut praises nurses, UH, health department | Local News

Conneaut Health Commissioner Nichele Blood thanked UH staff for their help vaccinating residents. “This is not something you see hardly anywhere, in the state ...
FloQast Named to Inc. Magazine’s

FloQast Named to Inc. Magazine’s

News Highlights ...
Idaho First Bank Announces Todd Cooper as CEO

Idaho First Bank Announces Todd Cooper as CEO

News Highlights ...
‘Twelve Minutes,’ a video game that will stay with you for a long time.

‘Twelve Minutes,’ a video game that will stay with you for a long time.

The premise is scary, if simple: A husband and wife sit down at the dinner table. There’s a knock at the door. An intruder claiming to be a police officer ...
Higher encryption risk?  ‘Your own success’, says the founder of the world’s largest hedge fund, Ray Dalio

Higher encryption risk? ‘Your own success’, says the founder of the world’s largest hedge fund, Ray Dalio

As a storehold of value, Dalio said crypto is intriguing and “probably could be important for us.” Read: Ethereum price surges above $4,000 but overshadowed by ...
Microsoft On the Verge of launching a Cloud PC desktop service

This How you can Check iCloud Keychain Password Security

Safari securely monitors your saved passwords using strong cryptographic techniques, and regularly checks derivations of your passwords against a list of ...
Show next
Compsmag - Latest News from tech, business and health
Logo