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Virgin Money UK ups credit provisioning; mortgage volumes fall

By BFN News | 08:09 AM | Tuesday 28 July, 2020

Banking group Virgin Money UK said it had further increased its credit provisioning to cover defaults related to the Covid-19 crisis. The company also reported a 1% fall in third-quarter mortgage lending volumes, offset by a rise in business lending and customer deposits. Net additional impairment provisions amounted to £42m, leaving £584m of total balance sheet credit provisions. The company reported a third-quarter impairment charge of £74m. Virgin Money UK said it had not yet seen any significant credit losses nor been required to make any significant specific provisions in relation to the pandemic impact. However, it said it had updated models for all of its portfolios with a more cautious set of updated economic assumptions from Oxford Economics. 'Our third-quarter financial results reflect lower demand from consumers due to the pandemic, but strong demand from businesses for government-supported schemes,' chief executive David Duffy said. Duffy said the company had granted around 67k mortgage and around 53k personal payment holidays, and supported around 25k business customers with lending arrangements. 'We know that things may yet get more difficult for many of our customers, but we are determined to continue to support their needs where we can and to fulfil our role in the economic recovery,' he said. At 8:09am: (LON:VMUK) Virgin Money UK PLC share price was +1.4p at 98.9p Story provided by

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