Virgin Money on track to deliver targets as mortgage and credit card balances shoot up
Virgin Money is on course to hit full-year targets, as strong credit performance continued to drive revenue forward.
Releasing its first quarter trading update, shares jumped 3.3 per cent as the firm said gross mortgage lending reached £1.4bn at the start of 2018 while net lending stood at £200m.
Mortgages grew by 10.4 per cent over the year to total £33.9bn.
Cards performed in line with expectations, while price and volume of retail deposits exceeded targets.
Credit card balances stood at £3bn as of 31 March 2018, a growth of 13.9 per cent from last year.
It follows a number of announcements for the company, including its joint venture with Aberdeen Standard Investments in March and the launch of its partnership with Virgin Atlantic in April.
Read more: Virgin Money and Aberdeen Standard Investments join forces in £40m deal
Jayne-Anne Gadhia, chief executive of Virgin Money, stated:
We have seen a stronger than expected customer response to the launch of our first Virgin Atlantic frequent flyer cards, demonstrating the strength of customer affinity with the Virgin brand. And we continue to make good progress in the development of our digital bank.
In March, we announced a new partnership with Aberdeen Standard Investments which we believe will drive significant growth in assets under management.