StockMarketWire.com - Virgin Money has reported a statutory loss after tax of £194m for the full year to 30 September 2019, which it said reflected legacy conduct costs and restructuring and acquisition costs, compared to a £145m loss after tax in 2018.

It has suspended its dividend for the full-year 2019 in light of additional PPI provisions, and said the board 'will reconsider dividends for FY20 in line with normal practice'.

In its full-year results, the newly-combined business announced underlying profit of £539m, down 7% on £581m in 2018, due to higher impairments from IFRS 9 adoption and normalisation. The group delivered slightly lower income of £1,639m, 3% lower year-on-year, in what it called 'a challenging environment', but said it more than offset this with reduced costs of £942m, a decrease of 6%, to deliver an increased operating profit of £692m, up 1%. Virgin Money reported that, in line with the rest of the industry, it received an 'unprecedented surge' in PPI information requests and complaints during August, requiring it to take additional PPI provisions of £385m in the second half of the year, or £415m for the full year. The group saw business lending growth of 4.5% to £7.9bn during the year, personal lending growth of 16% to £5bn, and mortgage lending growth of 1.7% to £60.1bn. Chief executive David Duffy said: 'In the first year of our newly combined business, we have delivered a good operating performance in challenging conditions and made great progress on the integration and rebrand to Virgin Money. 'Our statutory result was significantly affected by additional PPI provisions, driven by the unprecedented surge in PPI information requests in August, along with anticipated Virgin Money acquisition-related costs.' Story provided by StockMarketWire.com