Skip to main content

David Duffy, Chief Executive Officer:

“More people are choosing to bank with Virgin Money. While the past six months have seen turbulence in the economy and in the financial system, we have continued to focus on our target areas, growing customer numbers and deposits thanks to our new and existing digital products. Further customer-centric product launches are coming in the second half of the year.”

“We have a strong capital position and we’ve significantly grown pre-provision profit, while continuing our prudent approach. As the UK economy stabilises in the months ahead, we have a high degree of confidence in our long-term plans.”

Summary financials


6 months to 31 Mar 2023
£m
Restated 6 months to 31 Mar 2022
£m
Change
%
Restated 6 months to 30 Sep 2022
£m
Change
%
Underlying net interest income (NII)
855
782
9
810
6
Underlying non-interest income
78
66
18
84
(7)
Total underlying operating income
933
848
10
894
4
Underlying operating and administrative expenses
(477)
(456)
5
(458)
4
Underlying operating profit before impairment losses
456
392
16
436
5
Impairment losses on credit exposures
(144)
(21)
586
(31)
365
Underlying profit on ordinary activities before tax
312
371
(16)
405
(23)
Adjusting items(1)
(76)
(56)
36
(125)
(39)
Statutory profit on ordinary activities before tax
236
315
(25)
280
(16)

Performance Metrics(2)

Net interest margin (NIM)
1.91%
1.83%
8bps
1.86%
5bps
Underlying cost: income ratio (1)
51%
54%
(3)%pts
51%
-%pts
Cost of risk(CoR)
0.40%
0.06%
34bps
0.09%
31bps
Statutory return on tangible equity (RoTE)
6.1%
9.1%
(3.0)%pts
11.3%
(5.2)%pts
Common Equity Tier 1 (CET1) ratio (IFRS 9 transitional)
14.7%
14.7%
-%pts
15.0%
(0.3)%pts

(1) Hedge ineffectiveness is now presented as an adjustment to underlying earnings as detailed on page 90. The comparative periods have been adjusted accordingly.
(2) For definitions of the performance metrics, refer to ‘Measuring the Group’s performance’ on pages 344 to 352 of the Group's 2022 Annual Report and Accounts.

Benefitting from higher rates and growth in customers; continuing to invest in our digital future

Robust balance sheet with continued strong deposit inflows and broadly stable customer lending

Continued strategic momentum with digital propositions driving growth in relationship accounts

Enhancing customer and colleague support through Purpose-led delivery

FY23 outlook updated; NIM guidance for FY23 upgraded


Read the full announcement here.

FORWARD-LOOKING STATEMENTS

This document and any other written or oral material discussed or distributed in connection with the results (the ‘Information’) may include forward-looking statements, which are based on assumptions, expectations, valuations, targets, estimates, forecasts and projections about future events. These can be identified by the use of words such as 'expects', 'aims', 'targets', 'seeks', 'anticipates', 'plans', 'intends', 'prospects', 'outlooks', 'projects', ‘forecasts’, 'believes', 'estimates', 'potential', 'possible', and similar words or phrases. These forward-looking statements are subject to risks, uncertainties and assumptions about the Group and its securities, investments and the environment in which it operates, including, among other things, the development of its business and strategy, any acquisitions, combinations, disposals or other corporate activity undertaken by the Group, trends in its operating industry, changes to customer behaviours and covenant, macroeconomic and/or geopolitical factors, the repercussions of the outbreak of coronaviruses (including but not limited to the COVID-19 outbreak), changes to its Board and/or employee composition, exposures to terrorist activity, IT system failures, cyber-crime, fraud and pension scheme liabilities, changes to law and/or the policies and practices of the Bank of England (BoE), the Financial Conduct Authority (FCA) and/or other regulatory and governmental bodies, inflation, deflation, interest rates, exchange rates, tax and national insurance rates, changes in the liquidity, capital, funding and/or asset position and/or credit ratings of the Group, future capital expenditures and acquisitions, the repercussions of Russia’s invasion of Ukraine, the repercussions of the UK’s exit from the European Union (EU) (including any change to the UK’s currency and the terms of any trade agreements (or lack thereof) between the UK and the EU), Eurozone instability, any referendum on Scottish independence and any UK or global cost of living crisis or recession.

In light of these risks, uncertainties and assumptions, the events in the forward-looking statements may not occur. Forward-looking statements involve inherent risks and uncertainties and should be viewed as hypothetical. Other events not taken into account may occur and may significantly affect the analysis of the forward-looking statements. No member of the Group or their respective directors, officers, employees, agents, advisers or affiliates (each a ‘VMUK Party’) gives any representation, warranty or assurance that any such projections or estimates will be realised, or that actual returns or other results will not be materially lower than those set out in the Information. No representation or warranty is made that any forward-looking statement will come to pass. Whilst every effort has been made to ensure the accuracy of the Information, no VMUK Party takes any responsibility for the Information or to update or revise it. They will not be liable for any loss or damages incurred through the reliance on or use of it. The Information is subject to change. No representation or warranty, express or implied, as to the truth, fullness, fairness, merchantability, accuracy, sufficiency or completeness of the Information is given.

Certain industry, market and competitive position data contained in the Information comes from official or third party sources. There is no guarantee of the accuracy or completeness of such data. While the Group reasonably believes that each of these publications, studies and surveys has been prepared by a reputable source, no member of the Group or their respective directors, officers, employees, agents, advisers or affiliates have independently verified the data. In addition, certain industry, market and competitive position data contained in the Information comes from the Group’s own internal research and estimates based on the knowledge and experience of the Group’s management in the markets in which the Group operates. While the Group reasonably believes that such research and estimates are reasonable and reliable, they, and their underlying methodology and assumptions, have not been verified by any independent source for accuracy or completeness, and are subject to change. Accordingly, undue reliance should not be placed on any of the industry, market or competitive position data contained in the Information.

The Information does not constitute or form part of, and should not be construed as, any public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. The distribution of the Information in certain jurisdictions may be restricted by law. Recipients are required to inform themselves about and to observe any such restrictions. No liability to any person is accepted in relation to the distribution or possession of the Information in any jurisdiction.

Share