Virgin Money eyes Co-Op Bank assets

Speaking to Reuters Virgin Money's CEO, Jayne-Anne Gadhia, said: "The bank has not approached anybody in Co-Op Bank yet... but at some point we will look at this strategic opportunity".

In a statement, the Co-Operative Board said the sale was "something always considered a potential outcome of the turnaround plan" and is inviting offers for all of the issued ordinary share capital of the Bank.

It is also considering ways to raise equity capital from existing and new capital providers and a potential liability management exercise of its outstanding public debt.

In its full year results published this week, Virgin Money reported a 33% rise in underlying profit before tax to £213.3m, while statutory profit before tax increased to £194.4m, compared to £138m in 2015.