Branson realises banking dreams
(15 January 2010 – UK) Virgin money has agreed to buy, Somerset based, Church House Trust for £12.3 million (A$21.2 million) and plans to inject a further £37.3 million of new capital into the bank.
The deal will see Sir Richard Branson realise his ambitions for the web operation, Virgin Money, to become a fully-fledged bank selling its own range of savings and mortgages.
The small regional bank reported an operating income of £4.05 million and a profit before tax of £0.45 million for the year ended 31 December 2008.
Church House, a reincarnation of the bank Batten & Co, founded by solicitor Edmund Batten in 1792, has around 3000 private customers and £50 million in deposits; double its £25 million loan book.
The bank currently does not have a national branch network, but has offices located in Yeovil, Leeds and London.
Virgin Money’s executive chairman, Jayne-Anne Gadhia, revealed that the firm is also working on plans to bring ‘Virgin Money Shops’ to the high street.
Virgin Money is not talking about creating a huge network quickly, but as the brand develops the goal is to be a different force in banking in the future, it's something the firm will build on over time, Ms Gadhia added.
Ms Gadhia would also not rule out launching a second bid for Northern Rock, after the failed purchase two years ago.
Sir Richard Branson added that the Church House Trust business offers the web operation 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 already boasts over 2.5 million customers offering credit cards, personal loans, saving products and insurance.
The small regional bank reported an operating income of £4.05 million and a profit before tax of £0.45 million for the year ended 31 December 2008.
Church House, a reincarnation of the bank Batten & Co, founded by solicitor Edmund Batten in 1792, has around 3000 private customers and £50 million in deposits; double its £25 million loan book.
The bank currently does not have a national branch network, but has offices located in Yeovil, Leeds and London.
Virgin Money’s executive chairman, Jayne-Anne Gadhia, revealed that the firm is also working on plans to bring ‘Virgin Money Shops’ to the high street.
Virgin Money is not talking about creating a huge network quickly, but as the brand develops the goal is to be a different force in banking in the future, it's something the firm will build on over time, Ms Gadhia added.
Ms Gadhia would also not rule out launching a second bid for Northern Rock, after the failed purchase two years ago.
Sir Richard Branson added that the Church House Trust business offers the web operation 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 already boasts over 2.5 million customers offering credit cards, personal loans, saving products and insurance.
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