Virgin Money swings to loss

Virgin Money UK (VMUK) reported a half-year pre-tax loss after recording an additional £164m provision for bad debts expected in the wake of an economic downturn. More than half of that provision related to business lending, which accounted for 11 per cent of the overall loan book. Further pressure will mount on profits this year from the reduction in the Bank of England base rate, with the lender guiding towards a net interest margin of between 1.55 and 1.60 per cent in 2020.