Shares of Virgin Money UK PLC (LON: VMUK) fell more than 11% on Thursday after the company said its profit dell by 77% fo £124 million in the last year.
Tumbling profit came after the company was forced to take a £501 million impairment charge against bad loans amid the pandemic.
“Although the vaccine news is a strong cause of hope for the future, the economic benefits are still some way off when considering the immediate reality of current restrictions and so have not yet been factored into our near-term forecasts,” David Duffy, chief executive of Virgin Money, said.
The group saw pre-tax losses fall to £168 million, which is better compared to losses of £265 million the previous year.
Investors were also disappointed to hear that Virgin Money removed its guidance for 2022 amid the pandemic-driven uncertainty.
“These are exceptionally uncertain times for banks and the path to sustained profitability looks challenging,” Adam Vettese, an analyst at eToro, said.
Virgin Money share price fell to 123.65p to erase gains from the last week.
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