Virgin Money released its first quarter financial data this week, noting that it surpassed expectations despite the costs associated with introducing small business financial services earlier this year.
Reports in The Independent on Tuesday (May 1) said Virgin Money posted a 7.4 percent increase in overall deposits year over year and a 1 percent increase quarter over quarter, totaling $42.34 billion. The company also said its mortgage lending business is strong, totaling $1.91 billion. Reports said its mortgage balance sheet increased 10.4 percent year over year and 0.5 percent quarter over quarter.
Reports in Reuters noted that its Q1 gross mortgage lending was less than it was in Q1 2017, however, though its credit card balances were up year over year.
“Our customer-focused strategy of growth, quality and returns continues to drive strong business performance,” said Virgin Money Chief Executive Jayne-Ann Gadhia in a statement. “In addition to the strategic initiatives, we are focused on growing assets at the right pace and quality in a competitive mortgage market. We remain on track to deliver on the targets we set at the end of last year.”
Virgin Money’s results signal strength for the company despite the costs linked to introducing small business banking services.
“We launched our SME deposit account in January and look forward to additional product launches later in the year,” the chief executive said this week, according to separate Mortgage Solutions reports. She added that the firm is making “good progress” in digital banking and small business financial services.
Last February, the company revealed it spent more than $53 million last year to develop and roll out its small business operations.
“Broadening our customer appeal through the development of our SME and digital bank propositions will provide access to a wider pool of U.K. retail banking revenues and further diversify our funding base,” said Gadhia at the time.
Virgin Money’s 2017 earnings, released in February, also beat analyst estimates with a 28.1 percent increase in profits, which hit $379.9 million for the calendar year.