Virgin Money lines up Sir Brian Pitman to head banking push

Published on Wednesday 27 January 2010 21:00

VIRGIN Money is set to appoint industry heavy-hitter Sir Brian Pitman as chairman to lead its push to become a major high street bank.

Sir Richard Branson's financial services arm, which is headquartered in Edinburgh, wants to sign up the former chief executive and chairman of Lloyds TSB to lead an assault on the big British banks.

The firm is in talks with Pitman as it puts its board together in advance of its launch as a fully fledged bank this year.

Virgin Money recently bought small regional player Church House Trust in a deal worth 50 million to secure the licence needed to offer savings and mortgages. It is also seen as a front-runner to bid for the "good" part of nationalised bank Northern Rock.

Pitman already has strong links with Virgin Money as he advised the group on its attempt to secure Northern Rock before the UK government took it into public ownership in 2008.

He is well respected in the industry, having notched up a 49-year career at Lloyds that saw him lead the group through its merger with TSB in 1995. The banking stalwart joined Lloyds in 1952 and rose through the ranks to become chief executive in 1983. He was appointed chairman in 1997 before retiring in 2001.

Knighted for his services to banking in 1994, he was also president of the British Bankers' Association and has held a number of directorships at firms including Carphone Warehouse and Next, where he was chairman.

Virgin Money declined to comment, but the group is expected to make an announcement by the end of the week.

Headed by chief executive Jayne-Anne Gadhia, who lives in Edinburgh, Virgin Money has been looking to launch as a full bank for years. It wants to capitalise on the current lack of confidence in existing players, including the big Scottish institutions, following the financial crisis.

As well as its interest in Northern Rock, the group is also touted as a potential bidder for the assets being sold by part-nationalised Lloyds Banking Group and Royal Bank of Scotland. It is thought to be interested in 300 RBS branches in England and Wales. The branches are part of the RBS business banking franchise to be sold by order of the European Competition Commissioner.

Virgin Money recently boosted its management team with three senior hires. It has appointed Finlay Williamson, RBS's former finance director; Ian Cornelius, the former head of savings for Bradford & Bingley; and Marcus Ezekiel, who was head of legal for the retail division of HBOS.

This month Virgin Money also announced plans to hire 30 staff, doubling the number of employees in Edinburgh.

It has taken an additional 3,000sq ft in the Venue Studios building in Calton Road, where it established its headquarters more than a year ago. Nigel Rees, operations manager, said: "Edinburgh as a location is key to our business; the city is a world-class financial centre with an abundance of opportunities for growth."