Virgin Money adds three top managers as it 'branches' out

The branches are part of the RBS business banking franchise to be sold by order of the European Competition Commissioner.

Virgin Money, headed by chief executive Jayne-Anne Gadhia, has hired Finlay Willamson, RBS's former finance director, for the bank's manufacturing division.

Other new hires include Ian Cornelius, the former head of savings for Bradford & Bingley.

Another hire is Marcus Ezekiel, who was head of legal for the retail division of HBOS and until November worked with HBOS-owner Lloyds Banking Group as general counsel on the Government Asset Protection Scheme (APS). Lloyds evaded the government scheme for toxic assets after it raised 22.5 billion in a fundraising and rights issue.

Earlier this month, Virgin made its first move into the high street banking market after acquiring a small West Country bank, the Church House Trust. The deal meant Virgin acquired a bank licence required to take customer deposits.

Virgin has also been talking to a number of parties to acquire the retail bank division of Northern Rock. Virgin failed in its bid to acquire Northern Rock in 2007 at the onset of the banking crisis.

It is unlikely the sale of Northern Rock's "good bank" – which has 19bn in savings and 10bn in residential mortgages – will go ahead before a general election.

RBS, on the other hand, has already launched a sale process for its England and Wales branches, which will be sold under the bank's former Williams and Glyn's brand. Expressions of interest in the chain are due to be lodged by the end of January.

The wider shake-up in UK bank-ing markets has seen incumbents not so affected by the crisis improve their market shares. HSBC has boosted its commercial banking management team in Scotland by a third after it saw "encouraging growth" last year.

HSBC has hired ten relationship management and new business staff bringing its numbers to 37.

John Rendell, HSBC chief executive for Scotland, said business loans had grown 30 per cent in the last year. He added: "The investment in these new roles reflects our commitment to providing accessible and expert advice to our customers and our desire to sustain and accelerate our growth in Scotland throughout 2010."

Likewise, Clydesdale Bank said it had seen a 30 per cent increase in business banking customers acquired over the past year.

It claims the increase is due to the problems companies had been having with its main Scottish rival lenders, Bank of Scotland and RBS. Scott McKerracher, regional director for Clydesdale Bank in Scotland, said the bank "benefited from being able to welcome new clients who felt they weren't receiving the expected support and service from their existing bank".