VIRGIN Money has unveiled a leap in first half profits, which may increase the chance it will try to float on the stock market in coming weeks.
The lender, which employs around 200 people in Edinburgh, noted uncertainties relating to the referendum on independence but said it is business as usual in Scotland for now.
One of the self-styled challenger banks taking on giants like Royal Bank of Scotland, Virgin Money said it made good progress in the six months to June 30.
Underlying profits before tax increased to £59.7m, from £13.1m in the same period last year.
Chief executive Jayne-Anne Gadhia said the growth was driven by the company's success in the savings and mortgage markets combined with effective cost control. The bank, which bought the former failed lender Northern Rock from the Government for an initial £820 million in 2011, increased mortgage balances by 3.7 per cent in the first half of the year to £20.3 billion, from £19.6bn at December 31.
Gross mortgage lending was £2.5bn.
While savings balances were flat at £21.1bn, Virgin Money noted falling rates paid to savers "across the market" meant the costs of attracting deposits fell.
Ms Gadhia said Virgin Money enjoyed advantages compared to some rivals.
"Looking to the future, we are not burdened by the historical conduct and legacy challenges that face many incumbent banks," she said.
While Virgin Money did not comment on the prospect of a flotation the results announcement included signs that it may make a move soon.
The bank increased by £26m the amount it has provided regarding a payment it would have to make to the UK Treasury if it should float successfully between 2012 and 2016.
It said Glen Moreno, chairman of publishing company Pearson, will take over as its chairman by the middle of next year.
Mr Moreno is a former acting chairman of UK Financial Investments, which was set up to manage the Government's shareholdings in UK banks.
He will join the Virgin Money board in January before taking on the role held by Sir David Clementi since October 2011.
The announcement came the day after Royal Bank of Scotland, Tescco Bank and Clydesdale Bank said they would move their official bases to England in the event of a yes vote in the referendum on independence next week.
By having a registered office in England such lenders could ensure they could draw on the Bank of England as a lender of resort if they hit serious problems.
While Ms Gadhia spends much of her time in Edinburgh, Virgin Money's registered office is in Newcastle.
Asked how the company would respond if there is a yes vote next week, a spokesman said some things would need to be cleared up before the bank could reach a view.
He added: "All of the things that are being discussed around the vote, things like the currency question."
He said it is business as usual in Scotland for the company, which may create an unspecified number of new posts in Edinburgh under a programme to add 200 in the UK.
The staff in Edinburgh work in areas like operations, risk, finance, legal and human resources.
The spokesman said the company has no plans to open more outlets in Scotland, where it has five branches, of 75 in the UK.
In July the bank opened one of its new style banking lounges in Glasgow. This has meeting spaces, access to iPads and a cinema room.
Virgin Money employs more than 2,500 staff, with 1,700 in Gosforth, near Newcastle, and 200 in Norwich. It is owned by Sir Richard Branson's Virgin Group, US billionaire Wilbur Ross and an Abu Dhabi investment fund.
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