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Report: Virgin Money to postpone SME lending plans amid post-Brexit uncertainty

Virgin MoneyHoldings (UK) Plc has postponed its to enter the small andmedium-sized business lending market and will instead focus on expanding thecoverage of its online bank to improve its performance, Reuters reported July26, citing CEO Jayne-Anne Gadhia.

Gadhia told the newswire that given the uncertain climate inthe wake of the U.K.'s decision to leave the EU, the time was not right for thebank to get involved in the "new asset class."

Gadhia also said Virgin Money would "think much harderabout additional recruitment and probably slow down new recruitment" as itfocuses on building out existing lines of business, "rather thandeveloping new product lines."

Virgin Money the same day reported first-half profitattributable to equity owners of £67.5 million, up from £42.9 million in theyear-ago period. Net interest income rose to £255.6 million from £220.8 millionyear over year.