Virgin Money UK (VMUK) investor relations material

Executive summary

• Virgin Money UK became a wholly owned subsidiary of Nationwide Building Society in October 2024, continuing as a separate legal entity with its own board and banking licence.

• Statutory profit before tax rose 62% year-over-year to £558m, with RoTE improving to 6.7% from 3.9%.

• Customer lending fell 2% as growth in Unsecured and Business lending was offset by a 4% decline in Mortgages; deposits increased 4%.

• PRA and BoE confirmed Virgin Money's externally held capital instruments remain eligible for group capital requirements until end-2028.

• Board and executive changes followed the acquisition, with Chris Rhodes appointed CEO and further leadership transitions underway.

Financial highlights

• Net interest income (excluding notable items) rose 4% year-over-year to £1,778m; total operating income up 3% to £1,924m.

• Statutory total operating income up 5% to £1,921m; non-interest income (excluding notable items) down 7% to £146m.

• Net interest margin improved to 1.98% (from 1.91%), supported by credit card EIR adjustments.

• Cost of risk fell to 24bps (from 42bps), below previous guidance; impairment losses on credit exposures fell 43% to £177m.

• Operating expenses (excluding notable items) rose 6% to £1,028m, driven by inflation and the new BoE Levy.

Outlook and guidance

• The Group will continue to operate as a separate legal entity within Nationwide, with gradual integration and ongoing capital support.

• Focus remains on supporting customers, maintaining operational stability, and delivering on digital and efficiency strategies.

• Nationwide will review Virgin Money’s strategy and objectives over the next 18 months.