The bank added that it saw a rise in customers opening new accounts, with particular growth in demand for credit cards
Virgin Money said there are no signs of financial stress among customers as higher interest rates drove up profit margins for the lender.
The bank added that it saw a rise in customers opening new accounts, with particular growth in demand for credit cards.
It reported a 45% rise in personal and business accounts compared with last year, and said 160,000 new credit cards were opened in the three months to the end of June.
The business said its margins were boosted by higher interest rates, with the firm therefore raising its net interest margin forecast for the full financial year.
However, ongoing competition in the mortgage market offset returns somewhat as buyers shopped around for the best deal.
Unsecured lending grew 3.8% in the latest quarter to reach £6 billion, which the lender said was driven by high-quality credit card balances from new card sales and higher retail spending.
Meanwhile, business lending rose slightly by 0.3% to total £8.3 billion, despite a drop in Government support for business lending and a more subdued market.
Virgin Money’s chief executive, David Duffy, said there are limited signs of credit concerns among customers but that the business is ready to support people as higher living costs could lead to affordability issues.
Looking out into an uncertain economic environment, while our asset quality remains resilient and customers aren’t yet showing signs of financial stress, we are helping our customers and colleagues navigate what will be a more difficult period for many, he said.
Virgin Money has had another positive quarter, financially and strategically, he said.
He said: Looking out into an uncertain economic environment, while our asset quality remains resilient and customers aren’t yet showing signs of financial stress, we are helping our customers and colleagues navigate what will be a more difficult period for many.