Virgin Money plunges after missing profit forecasts

The news: Shares in Virgin Money have tanked after the dual-listed British bank's full-year statutory profits were cut almost in half.

The numbers: Virgin Money, which is listed on the London Stock Exchange and the ASX, posted a 42% drop in full-year pre-tax statutory profit from £595 million ($1.04 billion) in FY22 to £345 million in the year to 30 September 2023. Share on the ASX were trading 5.9% lower at $2.785 shortly after 3pm AEDT.

The context: The results disappointed analysts, who had expected a figure closer to £430 million. Virgin Money noted high interest rates and cost-of-living increases were constricting household finances, and it's set aside £309 million for potential defaults. Restructuring and plans to transform its digital business also cut into finances, with the bank announcing a £130 million investment in boosting its defences against AI-assisted cybercrime.