So far it will be controversial inflation growing, and the cost of living crisis reaches millions, this should be good for the long-suffering shareholders of banks.
VM is under fire due to plans to close 31 industry this year as it focuses on digital shock.
Today, she said that in six months, her net interest margin (NIM) – the gap between what he pays to depositors and charges from borrowers – has grown from 1.56% to 1.83%. It is likely to rise as soon as the Bank of England raises rates starting today.
For the largest banks such as Lloyds and Barclays, the NIM will be even higher.
Profits jumped 58% to £ 388 million. CEO David Duffy said: “We have made good progress in meeting our strategy while providing a significant increase in profits. We have a positive boost in attracting new customers to Virgin Money through record credit card sales, a good increase in the number of open personal checking accounts and a strong proliferation of our new digital free business checking account. ”
So far the bad debt is only 21 million pounds. This may change as the economy deteriorates.
City analysts believe that the combination of rising profit margins and lower costs is forcing stocks to be bought.
Ian Gordon of Investec said: “We believe the VM recovery building blocks are becoming more transparent.”
However, today the shares fell by 7 points to 170 points.