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The Markets
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The Markets
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Banks

Virgin Money delivers on strategy but remains cautious on economic outlook

The financial services company reported a 45% increase year-on-year in digital personal business and current account sales

Virgin Money UK PLC (LSE:VMUK) said it delivered on its digital strategy but remained cautious on the outlook for the economy in its third quarter statement.

The financial services company reported a 45% increase year-on-year in digital personal business and current account sales, with 160,000 new credit cards opened in the three months to June 30.

However, according to a statement, it remains cautious due to a weakened UK economic outlook as a result of global inflationary pressures.

"Looking out into an uncertain economic environment, while our asset quality remains resilient and customers aren't yet showing signs of financial stress, we are helping our customers and colleagues navigate what will be a more difficult period for many,” said chief executive David Duffy.

Despite this, it expects costs to “remain broadly stable” compared to last year.

Virgin Money was able to announce its first share buyback, giving back £75mln to investors, as well as reporting growth in target sectors, including unsecured lending and business lending, while mortgages remained stable.

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