Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Banking group Virgin Money posted a small first-half loss after impairment charges were pushed up by the Covid-19 crisis.
Pre-tax losses for the six months through March amounted to £7m, compared to a £9m profit on-year.
Impairment losses jumped to £232m, up from £77m on-year.
Underlying operating income rose 3% to £817m amid 0.3% loan growth to £73.2bn that included 5.7% growth in business lending and a 0.9% fall in mortgage lending.
Virgin Money forecast a net interest margin for the full year of 1.55%-to-1.60% and costs of greater than £920m, reflecting the lower interest rate environment and Covid-19 impacts.
Its net interest margin in the first half was 1.62%, which it said was in line with guidance.
'The Covid-19 outbreak and its impact on the nation's businesses and consumers has markedly changed the operating environment, driving an increased impairment charge of £232m against future loan losses and a reduction in underlying profitability,' chief executive David Duffy said.
'We enter this period from a position of strength, with a defensive loan book and resilient capital position, meaning we are well-placed to help our customers and colleagues through the crisis.'