A NORTH-EAST bank says it is laying down the gauntlet to the established elite after delivering a major profits increase.

Virgin Money is ramping up its fight to tackle the lending sector’s big four, its chief executive Jayne-Anne Gadhia told the Northern Echo.

Ms Gadhia said the firm was buzzing after seeing underlying pre-tax profits rise 127 per cent to £121.2m in 2014, with mortgage balances lifting to £21.9bn, and credit card values shifting 41 per cent higher to £1.1bn.

She added the results means workers below executive level at the Newcastle-based lender will receive a bonus of about £2,000, made up of a success payment and a previous award of £1,000 of shares when the company last year listed on the stock exchange.

Part-owned by Sir Richard Branson, the bank hopes to break the big four of Barclays, Lloyds, HSBC and Royal Bank of Scotland, which owns Natwest, and expects to be admitted to the FTSE 250 later this month to strengthen that quest.

Ms Gadhia said: “There is always a buzz in the office, but it is really back here with these results.

“The great news is we have also been able to pay a share bonus on top of normal bonus awards.

“But our successes also show we are a real competitor; we are not a minnow and we have cut-through nationwide.

“Competition is good; it keeps everyone on their toes and it is important in delivering innovation in the future.

“Our presence in the FTSE 250 will give us more stature too.

“It shows we are growing, thriving, flourishing, and understand what customers’ want.”

Ms Gadhia said the company has created 140 jobs in the last year, with the majority at Virgin’s base in Gosforth, which oversees mortgage operations as well as key aspects of its saving business and its credit card venture.

She also added her support to calls by made by Yorkshire Building Society chief executive, Chris Pilling, who has demanded financial regulators prioritise making it easier for customers to switch their current account provider.

Ms Gadhia said: “I completely agree with him; it’s something we could be at the forefront of.”

Virgin Money employs more than 2,500 staff, with about 1,700 people based in Newcastle.

In 2011, it paid the Government £747m for the so-called ‘good bank’ element of Northern Rock, while the ‘bad part’ was subsumed into UK Asset Resolution, which also runs the former Bradford & Bingley mortgage book.

At the time of last year’s flotation, bosses said every one of its Newcastle-based workforce would be awarded £1,000 worth of shares, though directors and senior management, who already have holdings in Virgin, were excluded from the offer.

Virgin Money's results come in the same week Sir Richard visited the North-East.

He told The Northern Echo Virgin's agreement with Stagecoach to operate the East Coast rail franchise under the Inter City Railways banner, which started this week, will make the line "sing" with new services and improvements for passengers.