RICHARD Branson has pledged to rock the hated banking industry — with a
£1.5billion stock market float of his Virgin Money business.
The company — almost half-owned by Branson — says it now has five million
customers and is close to being profitable.
A stock market float is likely to be welcomed by consumers sick of traditional
banks — many of which went bust in the credit crunch and had to be bailed
out by taxpayers.
Virgin Money bought Northern Rock from the government last year for
£750million — gaining an extra million customers. It now has five million in
all — enough to justify claims it has an eye on the big time.
Losses for the year to December fell sharply to £8.4million from £59.1million
a year earlier. City sources say it is now talking to advisers about joining
the stock markets shortly.
It could be worth £1.5billion when it does.
Chief executive Jayne-Anne Gadhia said that Virgin was bringing real
competition to British banking.
She said: “We have been able to provide real support to the UK housing market
surpassing the net lending levels of most of our high street competitors.”
Virgin acquired a network of 75 branches, a £14billion mortgage book and
£16billion in savings when it bought Northern Rock in 2011.
The “bad” or “toxic” part of Northern Rock is still owned by the government
and is being wound down.
The firm employs about 2,700 staff after recruiting another 200 employees over
the past year or more.
It is owned by Sir Richard’s Virgin Group, Wall Street billionaire Wilbur Ross
and an Abu Dhabi investment fund.
SUN CITY COMMENT: SIR Richard Branson has forged a career from marching
into tired industries and giving them a majorshake-up.
Banking could hardly be more ripe for change.
A fresh player could win over angry UK customers. We should wish him well.