Virgin Money sets aside £66m to cover bad loans

Virgin Money has set aside £66m to cover bad loans as the economic outlook darkens and squeezes British households.

The UK’S sixth-largest lender said it has bolstered its call centre teams and paused some restructuring efforts amid a surge in inquiries over soaring interest rates and cost pressures.

The bank, created in 2018 following a merger with FTSE 250 rival CYBG, launched a three-year restructuring programme in 2021 to further cut its branch network, but said it has largely paused this since the start of last year in response to the cost of living crisis.

David Duffy, chief executive of Virgin Money, said: “Arrears remain broadly stable but we’ve increased support for those who need it.”