Glasgow-headquartered Virgin Money UK plc said its deposits grew 1.2% to £66.2 billion in its first quarter, with “strong growth in new term deposits at attractive pricing offsetting lower savings balances.”

In a first quarter 2023 trading update, Virgin Money UK said mortgages grew 0.4% to £58.4 billion, business lending was up 2.4% to £8.4 billion, and unsecured lending increased 0.9% to £6.2 billion.

Provisions increased to £485 million (Q422: £457m) “driven by higher modelled ECL in cards, reflecting prudent new business staging & the expectation arrears will normalise from low levels.”

Virgin Money CEO David Duffy said: “We’ve had a positive first quarter with continued good progress on digitisation and growth in lending across the business as more customers choose Virgin Money.

“Arrears remain broadly stable but we’ve increased the support available to those who need it and remain prudently provisioned for an uncertain economic outlook.

“Looking ahead, we have good financial momentum and a number of exciting digital product launches to come which will support our continued growth.”