Virgin Money Returns to Profitability

June 26
12:41 PM 2013

The UK financial group backed by billionaire Richard Branson, Virgin Money, announced last Wednesday that it was back in the black after the end of its fourth quarter. The company also promised to deliver an annual profit in 2013.

The increase in profit growth comes from the funds takeover of state owned Northern Rock back in January 2012, the group said according a trading update released.

Its number of accounts have increased by 1.7 million since the time of the acquisition. The retail deposit balances as well as the mortgage balances have shown growth increase by 14% and 19% for both balances. 

The company did report a loss of GBP8.4 million for 2012, which was at GBP59.1 million pounds just last year. It also forecasted an annual profit of an underlying basis for 2013.

According to Virgin Money CEO Jayne-Anne Gadhia, in a statement, "We are well-positioned for continued strong growth and look forward with great optimism."

Just last January, the group purchased GBP1 billion worth of assets from Bank of America's MBNA unit and it also unveiled plans to launch its own credit card firm.

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