Virgin buys regional bank as platform for launch
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Virgin Money has agreed a deal to buy a small regional private bank which it will use as the platform for its retail banking launch.
Virgin has agreed a deal with Church House Trust to acquire the bank, which has already been approved by the FSA.
The acquisition of Church House Trust will provide the platform from which Virgin Money will develop a retail banking business in the UK – offering a full range of products to consumers under the “Virgin Money” brand.
Church House Trust is a regional bank offering deposits and mortgages.
Virgin says among the attractions of Church House are that it has no reliance on wholesale markets and that retail deposits are double the bank’s loan book.
Virgin founder Sir Richard Branson says: “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 chief executive Jayne Anne Gadhia says: “The financial crisis has tarnished the reputation of many UK banks.”
She adds: “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 a sustainable, savings-based business. We see the acquisition of Church House Trust as a strong and sensible first step in delivering Virgin Money’s banking ambition”.
The asset management arm of Church House, Church House Investments is to be bought out by existing management and run as a separate entity.
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Readers' comments (7)
Anonymous | 8 Jan 2010 9:45 am
Let's hope this is the customer-centric breath of fresh air the high street has been waiting for!
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Anonymous | 8 Jan 2010 9:47 am
As long as this isn't going to be another of Virgins companies that claims to be doing things almost charitably when in reality they are looking to make as much money as any other company.
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Anonymous | 8 Jan 2010 10:18 am
Another venture by Mr Branson, having had a Virgin Credit Crd for a year, i would suggest that this will be another cheap business chasing market share by all of the falls stupid enough to follow Mr Branson, the prime example been thier unit trust business selling tracker funds poor performance from a poor company.
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Bob Scott | 8 Jan 2010 10:28 am
Sorry,where was Jayne Gadhia headhunted from?
Oh yes! Natwest/RBS the bank with the greatest tarnish and biggest bailout. I bet Virgin Bank will NOT be a mutual and presumably will not be working for the good of customers but for the SHAREHOLDERS.New name,old ways
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Rob Jupp, Savills Lending Solutions | 8 Jan 2010 12:27 pm
The mortgage market badly needs new liquidity and greater competition. Virgin Money will give both of these in 2010 and I suspect, in significant volumes. I would think that they may also look at being very innovative and if so should be a great partner with those experienced and professional mortgage advisors who have demonstrated they can survive the worst downturn in a lifetime. A warm welcome to the team at Virgin Money.
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Brigid benson | 12 Jan 2010 7:48 am
Agree w previous commentators that virgin is run as a business to maximize profits for shareholders not the savers. Bank with well run mutuals with no shareholders which acheredto the fundamentals of sound banking, such as the Coop and Nationwide. Sad t see current government use our money to prop up plc's and not use opportunity to praise and encourage public to use the good guys!
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Anonymous | 12 Jan 2010 1:00 pm
Well it's good to see new players in the High Stree banking sector, which has seen substantial falls in numbers in the last 40 years.
Having said that, Virgin will not be a mutual!
In my view, one of the gratest travesties of the turn of the century was the FSA and Governmental acquiescence to the demise of mutuals. I think this was the greatest legalised fraud on members in my working lifetime!
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