Virgin Money shares soar after handing staff 10 per cent pay rise
Virgin Money shares have jumped today after the company handed out 10 per cent pay rises to most of its 7,500 staff.
The pay bump comes on top of a £1,000 one-off payment in August to help combat the cost of living crisis.
Staff will receive around nine and 11 per cent extra across two instalments in January and July, the company confirmed today.
Shares jumped 13.6 per cent to 165.4p per share by late-morning.
Virgin Money’s profits have also jumped after launching its cost of living hub to support customers with money saving suggestions and budgeting tools.
Richard Branson’s banking offering had its pre-tax profit surge more than 40 per cent to £595m in the year to the end of September, up from £417m in the 12-months prior.
The surge in profits comes as interest rates in the UK rise rapidly, in a bid to curtail scaling inflation.
Customer lending inched higher over the year to £72.5bn, after pandemic restrictions in 2021 drove a dip business demand and the public stashed cash into savings.
Inflation in the UK – the highest in 40-years – has stoked a historic cost of living crisis, as the price of food and fuel spike significantly.
As part of its new digital strategy, the London-listed company launched a cost of living hub to support customers through a global economic downturn, and a recession in the UK.
The reception for new digital products has continued to grow after pandemic restrictions in the UK have eased, the company added.