Virgin retail bank moves step closer

Friday 8th January 2010

Corporate giant Virgin is set to break into yet another market, with plans to take steps into retail banking.

By buying a controlling portion of Church House Trust, Virgin Money plans to develop a retail banking business in the UK.

Virgin Money, which currently has more than 2.5 million customers, will offer consumers a selection of various account types.

Jayne Ann Gadhia, chief executive of Virgin Money, said: "The financial crisis has tarnished the reputation of many UK banks. Virgin Money will provide a better, different form of banking to its customers, increasing competition in the sector.
Our approach to banking is founded on developing sustainable, savings-based business."

Sir Richard Branson, founder of the Virgin group, said: "The Church House Trust business offers us a strong platform for growth. Virgin Money aims to bring simplicity to the UK banking market which has traditionally been a complex sector."

Virgin Money, which operates out of Edinburgh, London and Norwich in the UK, made a profit of £27.5 million before tax in the last financial year. Church house reported a profit of £0.45 million before tax.

David Batten, Chairman of Church House Trust, said: "The sale of Church House Trust to Virgin Money represents a good outcome for the business, its shareholders and its customers."

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