Finance: Virgin Money's profit misses forecasts as cost pressures bite

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Finance: Virgin Money's Profit Misses Forecasts as Cost Pressures Bite

Virgin Money (VMONEY.L) has reported a profit that misses analysts' forecasts as cost pressures and impairment charges weigh on the UK bank. The bank's underlying profit before tax fell to £504 million in the six months to September 30, down from £572 million a year earlier.

Virgin Money said that it had been hit by higher costs, including increased staff expenses and technology investments. The bank also took a £107 million impairment charge on some of its loans, reflecting a worsening economic outlook.




Cost Pressures and Impairment Charges Weigh on Virgin Money's Profit


The results come as Virgin Money is in the midst of a major overhaul under its new chief executive, David Duffy. Duffy has pledged to cut costs and improve the bank's efficiency. However, he has also warned that the bank will need to invest in its technology and people in order to remain competitive.

The higher costs and impairment charges have offset strong growth in Virgin Money's lending business. The bank's net loans grew by 8% in the six months to September 30, to £44.6 billion.

Conclusion


Virgin Money's results are a mixed bag. The bank's lending business is growing strongly, but cost pressures and impairment charges are weighing on profit. The bank's new chief executive, David Duffy, is in the midst of a major overhaul, and it is too early to say whether he will be able to turn the bank around.

Finance, Virgin Money, profit, cost pressures, impairment charges

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