Virgin Money has reported a $19.5 million loss for the year to March 2008, making it its third consecutive year of losses.
David Wakeley, Virgin Money CEO, told Mortgage Business yesterday the result was aligned with expectations.
“In line with Virgin Money’s strategic plan we expected to be in a loss making position for the year, having only recently launched the mortgage product,” he said.
“Virgin Money is not immune to the greater financial services market conditions and the financial performance was impacted by the advent and continuation of the credit crunch,” he said.
Mr Wakeley said Virgin Money would boost profits in the current financial year with its superannuation business and cash flows from its mortgage back book.
He also pointed to Virgin Money’s $39 million transaction with Westpac, which occurred two days into the new financial year. Under the agreement, Westpac will use the Virgin brand on the Virgin credit card portfolio until 1 June 2009.
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