- Unsecured lending takes centre stage
- Cost of living crisis casts long shadow over banks
Virgin Money (VMUK) has made a great deal of progress over the past few years in building its regulatory capital and returning sustainable cash flows to the business. Against the backdrop of rising interest rates rebuilding margins for the banking sector, along with a notable rise in unsecured lending, Virgin has fared better than many had forecast. However, the share price attrition over the past 12-months suggests that doubts remain over the resilience of the bank’s profits at a point when the economic picture is darkening.