On the 18th of June, 2018 the boards of CYBG plc and Virgin Money Holdings (UK) plc (Virgin Money) announced the agreement of terms of acquisition in a bid to close the gap on the "big five" UK banks. As a part of the deal the all of the groups retail customers would be moved to Virgin Money. As of September 2022, the combined group that makes Virgin Money UK had total assets worth approximately 91 billion British pounds.
Key figures
In the year ending September 30, 2022, the combined group had approximately 6.6 million customers and an average of over 6,800 full-time equivalent employees. The bank saw several improving key performance indicators (KPIs). Asset growth grew from negative 1.3 percent to 3.15 percent, cost to income ratio dropped from 81 percent to 62 percent, and the earnings per share increased notably as well.
Challenger banks
The term 'challenger bank' is used as a description of banks and financial services that were created after the Global Financial Crisis and have made significant impact in 'challenging' incumbent large banks, or have had a significant impact on the market. KPMG describe four main areas in which challenger banks have appeared in the market in the United Kingdom. These include full service retail banks such as CYBG/Virgin Money, Metro Bank and the Co-op, Specialist lenders such as OneSavings Bank and Aldermore, retailer banks including Tesco's and Sainsbury's and Digital Banks. As the newest and perhaps the most exciting facet of challenger banks, Digital banks are mobile app based banks that do not have a physical presence on the high street. Due to their simplicity and ease of use they have attracted significant attention from customers and investors alike.
