Proactive Investors - Virgin Money UK PLC (LON:VMUK)’s mortgage book shrank by 2.7% to £56 billion year on year in the third quarter.
It is likely to be the final reporting period for the bank before being taken over by Nationwide Building Society (LON:NBS).
Virgin Money’s customer lending segment fell by 0.7% in the third quarter, although customer deposits increased by 3.8%.
Net interest margins fell four basis points to 1.89% and the CET1 capital ratio (a key liquidity metric) dipped five basis points to 14.4%.
Virgin Money has previously warned of tighter margins due to lower expected contribution from credit cards and pricing pressure from competition.
David Duffy, Virgin Money’s chief executive, said of today’s results: "Our strategy remains on track, with financial performance in line with guidance… The acquisition by Nationwide is progressing as anticipated with the recent CMA clearance, and we expect it to complete in the final quarter of the calendar year."
Nationwide announced the £2.9 billion bid in March to the surprise of the financial services industry and despite facing a revolt by certain Nationwide members, the merger is all but done.
Nationwide members were petitioning for a vote on the deal, leading to a lively annual meeting in July, but their wishes were brushed aside by Nationwide’s management.