Virgin Money delivers 'prudent, profitable growth' in customer lending

He added: “Arrears remain broadly stable but we’ve increased the support available to those who need it and remain prudently provisioned for an uncertain economic outlook.

“Looking ahead, we have good financial momentum and a number of exciting digital product launches to come which will support our continued growth.”

Mortgage balances increased during the quarter by 0.4 per cent which Virgin Money said was supported by the “strong pipeline” of business established last year, and despite the slower housing market in the first quarter.

The statement added: “The group is currently finalising its investment in a new mortgage platform, which will be launched for direct customers in the coming months, and intermediaries soon after. This will create a smooth end-to-end digital process for both direct customers and mortgage brokers, improving both efficiency and customer service.

“This will extend our market reach and enable us to compete better over the medium term.”

Business lending increased by 2.4 per cent in the first quarter to £8.4bn and overall deposits grew by 1.2 per cent to £66.2bn.

Virgin Money said overall arrears remained broadly stable across its key lending segments.

The statement added: “We are committed to supporting our customers to manage the wider cost of living crisis. We have established an online ‘Cost of Living’ hub, which offers free advice and support to customers who are seeking guidance on managing their finances.

“Where customers require tailored support, we are providing assistance, including the ability to restructure facilities or make reduced payments.

“During the quarter, we also partnered with Youtility, giving customers the ability to save money on their bills, accessible via the Virgin Money Banking App.”

Virgin Money said it had continued to build momentum in implementing its digital strategy, which it said will drive improved efficiency and cost reduction over time.

It added: “The group will continue to improve digital journeys and is also developing new tools to create a more conversational form of online banking, including a new virtual assistant chatbot linked to our core systems, which will be able to make real-time changes to a customer’s account.”