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Virgin moneys underlying pretax profit jumps 53 percent


´╗┐British lender Virgin Money Holdings Plc (VM. L) said its full-year underlying pretax profit rose 53 percent, helped by growth in its core mortgages, savings and credit card businesses which outpaced the market. Shares in the FTSE 250 Midcap . FTMC company, which rose as much as 10.51 percent on Wednesday, were up 7.23 percent at 364.5 pence at 1013 GMT (05:13 a.m. EST). The bank, which listed on London's main market in 2014, said it would increase credit card balances to at least 3 billion pounds ($4 billion) by the end of 2017, a year earlier than it anticipated. Credit card balances rose 44 percent to 1.6 billion pounds during 2015. Underlying pretax profit rose to 160.3 million pounds for the year ended Dec. 31 from 104.8 million pounds a year earlier."After a miserable FTSE100 bank results season in which every large bank missed market expectations, here come the UK "challenger banks"! Today's Virgin Money results (once again) represent material outperformance vs consensus expectations," Investec analyst Ian Gordon wrote in a note. Virgin Money, which is one of the bigger "challenger" banks in Britain, said gross mortgage lending rose 29 percent to 7.5 billion pounds in the year. The British housing market had been buoyant in 2015.

The bank recommended a final dividend of 3.1 pence per share, taking the total for the year to 4.5 pence per share. Virgin Money said it was aware of the risks related to the impending UK referendum on EU membership, the uncertain outlook on interest rates, and the recent market turbulence caused by the slowdown in emerging markets and falling commodity prices. Britain will hold a referendum on its EU membership on June 23 and the possibility of "Brexit" has kept the sterling near a seven-year low against the dollar.

PRICE OF BREXIT Chief Executive Jayne-Anne Gadhia said the bank was aligned with UK economy and if Britain was to stay in or exit the EU, Virgin Money would perform based on the impact a potential Brexit would have on the UK economy as a whole.

Gadhia, the first female CEO of a listed British bank, added that if there was to be a "Brexit", the issue would be the likelihood of increased prices in consumer finance, mortgages and credit, and therefore financial products because of the uncertainty in the market and the potential impact on sterling."I would see that prices would probably increase and we would follow the market in pricing accordingly." Gadhia said.; var median = (relatedItemsTotal / 2); var $relatedContentGroupOne = $('.related-content.group-one ul'); var $relatedContentGroupTwo = $('.related-content.group-two ul'); $.each($relatedItems, function(k,v) { if (k + 1 = median) { $relatedContentGroupOne.append($relatedItems[k]); } else { $relatedContentGroupTwo.append($relatedItems[k]); } }); } else { $('.third-article-divide').append($('div class="related-content group-one"h3 class="related-content-title"SEE ALSO/h3ul/ul/div')); $('.related-content ul').append($relatedItems); } },500); } Up Next Britain's Next chills clothing sector with cut to profit forecast LONDON Next cut its profit forecast for the current financial year after a poor Christmas and warned of a further decline in 2017-18, sending shockwaves through Britain's clothing sector as the most successful performer of the last decade faltered. Credit Suisse, AstraZeneca among top BofA-ML's top European picks for first quarter LONDON Credit Suisse and AstraZeneca are among Bank of America-Merrill Lynch's top picks for the first quarter of 2017, as the market is overly pessimistic on both stocks, according to analysts at the bank. Tesla posts 9.4 percent fall in quarterly deliveries Tesla Motors Inc said on Tuesday fourth-quarter deliveries fell 9.4 percent due to short-term production hurdles from the transition to a new autopilot hardware. MORE FROM REUTERS window._taboola = window._taboola || []; _taboola.push({ mode: 'organic-thumbnails-a', container: 'taboola-recirc', placement: 'Below Article Thumbnails - Organic', target_type: 'mix' }); Sponsored Content @media(max-this site) { #mod-bizdev-dianomi{ height: 320px; } } From Around the Web Promoted by Taboola window._taboola = window._taboola || []; _taboola.push( { mode: 'thumbnails-3X2', container: 'taboola-below-article-thumbnails', placement: 'Below Article Thumbnails', target_type: 'mix' } ); window._taboola = window._taboola || []; _taboola.push

Your money money tips from historys richest man


´╗┐(The author is a Reuters contributor. The opinions expressed are her own.)By Lauren YoungNEW YORK Aug 4 Warren Buffett and Bill Gates have nothing on Jacob Fugger, a German financier during the Renaissance who monopolized the silver business, became the banker of kings, convinced the papacy to legalize moneylending and paved the way for today's bond market. At the height of his career in the 16th century, Fugger (rhymes with "cougar") accumulated a fortune amounting to a significant portion of Europe's economic activity. And, yet, few people have ever heard of him. A new book about Fugger, "The Richest Man Who Ever Lived," includes the money lessons for investors. Below is an edited interview with the book's author, Greg Steinmetz, who is a securities analyst and former journalist in New York. Q. What impact did Fugger make on the long-term world of money?A. Before Fugger came along, Christians could not legally charge interest on loans. That's why the Jews were the moneylenders. It's in the Book of Luke that one should loan without expecting anything in return. The church enforced that. Christian lenders such as the Medicis got around this by calling interest a penalty or handling fee. It made lending cumbersome. Fugger said enough of that. He orchestrated a lobbying campaign with the Vatican. The pope came around and said if you are a lender taking risks, it is fair to charge interest.

Q. What money lessons can we learn from Fugger?A. Fugger had nerves of steel. Although he had great instincts, those instincts were always backed by superior information. He was one of the first businessmen north of the Alps to use modern accounting - he always had a firm grasp of the numbers. He could see the big picture better than any of his competitors. Investors today don't look at the numbers, let alone the footnotes of a 10-K, an annual report of a company's revenue and profits.. In addition, Fugger did not bail out at the first sign of trouble. The most common mistake that investors make is to sell low and buy high. Finally, he could always add value for his customers. He made himself indispensable. That kept him in the game.

Q. What was his biggest money mistake?A. There are a few failures. Some shipping deals didn't work out. The King of Spain raised money from investors to send a fleet to India. Fugger invested in the venture, and the ships never came back. He got the big things right, though. The interesting thing about him is he just went from success to success. A rival of his had a bank - he was in mining like Fugger was - but he made a disastrous attempt to corner the mercury market and ended up dying in debtors' prison.

Q. Would Fugger have been a good hedge fund manager?A. Some people just have a gift for making money. He had the gift. The first large investment he made was not only with his money and family's money, but also with money from friends. How he convinced them that an unproven entity could make a massive bet on Austrian silver is beyond me. He must have had a tremendous ability to instill confidence in people. Unfortunately, he didn't leave a diary. The evidence I relied on is fragmentary, including his accounting statements and letters to customers and creditors. Q. Did he actually enjoy his money?A. Fugger had the biggest house in Augsburg, Germany, wore furs and got driven around in coach with 12 horses. It was important to make show of wealth to demonstrate to customers and lenders that he had a lot of money. There was a perception game in those days that symbols mattered more than they do today. You couldn't look at a proxy and see he owned 100 percent of a company. The outward trappings of wealth mattered a great deal. Q. What was Fugger's life like?A. He worked all the time, but for him, like Buffett, work was fun. Buffett says he tap dances to work every day because he loves it. I don't know for sure, but Fugger was made of the same stuff. He worked until his dying breath in 1525 at the age of 66.