Vida Group Holdings Limited has reported a strong first-half performance for the six months to 30th June 2025, with profit before tax rising to £10.7m from £1.9m a year earlier.
Gross mortgage lending more than doubled to £348m compared with £165m in the first half of 2024, supported by increased funding capacity and stronger margins.
The results mark Vida’s first full year as a bank, following PRA licence approval in November 2024.
The lender’s retail deposit base grew rapidly in the first half, with £1.1bn in net inflows helping to reduce wholesale funding dependence and lower the average cost of funds.
Retail deposits now stand at £1.29bn, while wholesale funding liabilities have fallen to £1.21bn from £1.92bn at the end of 2024.
Vida also completed a £250m securitisation under the London Bridge Mortgages 2025-1 programme, improving balance-sheet flexibility and realising capital gains.
The Group’s net interest margin rose to 2.13% (H1 2024: 1.73%), while operating income increased to £30.8m from £18.6m.
The cost-to-income ratio improved significantly to 63% from 91%, despite continued investment in technology and growth.
Anth Mooney, chief executive officer at Vida, said: “This was a strong first half for Vida, reflecting the benefits of our new banking licence, a more diversified funding base, and continued operational discipline.
“Retail deposits have transformed our balance sheet and materially reduced our cost of funds, supporting profitable mortgage growth.
“With mortgage applications of over £2bn year to date and a current pipeline of £600m, we have continued to see strong demand for our mortgage products from brokers and customers.
“We’ve seen record demand in September and expect a strong finish to the year as momentum continues. Our strategy of disciplined growth is delivering results, and we are well-positioned to build on this success in 2026.”
The Group said credit quality remains stable, with loans more than 90 days in arrears at 2.3%, while provisions coverage increased slightly to 0.29%. Liquidity also remains robust, with a Liquidity Coverage Ratio of 218% and total capital ratio of 17.1%.
The board expects continued growth through an expanded retail deposit franchise, selective securitisations and disciplined mortgage origination in the second half of the year.
