Brexit worries continue to weigh on banks - Virgin Money

The UK banking market continued to face competitive pressures due to uncertainty over the final Brexit settlement, Virgin Money said on Tuesday.

The company said first quarter deposits and business lending both grew, while its mortgage book fell in a tough market.

Deposits grew 1.6% to £64.8bn in the three months to 31 December, while business lending grew 2.5% to £8.1bn helped by customers switching from RBS.

Virgin's mortgage book fell 0.8% to £59.6bn “as we remain disciplined in a competitive market”, the company said.

The net interest margin, the difference between rates charged on loans and deposits, was unchanged quarter on quarter at 160 basis points as the group forecast a full year range of 160 – 165 points.

“While sentiment improved following December's election result, the UK banking market continues to face competitive pressures and uncertainty over the final Brexit settlement,” said chief executive David Duffy.