Vida has posted a gross mortgage lending figure of £348m for the first six months of the year, up from £165m last year – marking a 111% growth.
In its financial results, the bank said it completed an additional £128m in retention lending.
This was its first financial reporting period as a bank, following its Prudential Regulation Authority (PRA) approval in November last year. Vida said this allowed it to leverage deposits to boost funding, lower the cost of funds and support mortgage origination.
It had retail deposit inflows of £1.1bn over the period, which it said “transformed” its funding base and reduced its dependence on wholesale funding. Further, the average costs of funds fell from 1.05% over SONIA compared to 1.46% last year.
Vida also completed a £250m securitisation in H1, resulting in capital gains and improved balance sheet flexibility.
Although Vida invested more in its technology and growth, the bank said its operating efficiency strengthened, with an improved cost-to-income ratio of 63%, compared to 91% previously.
Aldermore Insights with Jon Cooper: Edition 2 – Brokers: The unsung heroes powering a resilient mortgage market
Sponsored by Aldermore
Its net interest margin also improved from 1.73% in H1 2024 to 2.13% this year.
Vida closed the period with a profit before tax of £10.7m, an £8.8m growth on its figure of £1.9m last year and ahead of its full-year 2024 profit of £3.6m.
Looking ahead, Vida will focus on scaling its mortgage origination while maintaining risk discipline, maintaining a wholesale funding presence, and maintaining strong liquidity and capital resilience.
Anth Mooney, chief executive of 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.”
