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October 22.2025

2 Minutes Read

How Vida Bank More than Doubled Mortgage Lending to £348m in H1

Upward red arrow shows growth on crumpled paper, Vida Bank gross mortgage lending.

Vida Bank's Remarkable Growth: A Testament to Strong Management

Vida Bank has made headlines with its impressive first-half results for 2025, seeing a staggering 111% increase in gross mortgage lending, now amounting to £348 million, up from £165 million just a year prior. This phenomenal growth can be attributed to the strategic initiatives implemented following its designation as a fully licensed bank under the Prudential Regulation Authority (PRA) last November.

Transformative Retail Deposits Fueling Expansion

One of the key factors in Vida's newfound success is the significant retail deposit inflow of £1.1 billion in the past six months. This influx has drastically altered the lending bank's funding structure allowing it to lessen its reliance on more volatile wholesale funding and bring down costs. The average cost of funds dropped astonishingly from 1.46% to 1.05% above SONIA over the same period, providing a robust foundation for lending operations.

Increased Profitability Signals Long-Term Viability

In tandem with its lending increase, Vida also reported a profit before tax of £10.7 million, a dramatic rise from £1.9 million the previous year. Such financial performance is bolstered by improved efficiency, evidenced by a cost-to-income ratio decline from 91% to 63%, as the firm continues to invest in technology while enhancing operational discipline. The net interest margin similarly sharpened to 2.13%, compared to 1.73% previously, indicating a sound return on the bank’s growing assets.

The Future Looks Bright for Vida

Chief Executive Anth Mooney has commented on the strong pipeline of £600 million and over £2 billion in mortgage applications year-to-date, suggesting sustained demand for Vida’s products. This trajectory aligns with strategic ambitions to build upon its successes while exercising fiscal prudence, maintaining risk management protocols, and staying resilience-focused.

Key Insights for Financial Institutions

The transformation of Vida Bank highlights the importance of operational efficiency, adaptive funding strategies, and clear leadership in navigating the complexities of the financial landscape. Other lenders can draw insights from Vida's model, particularly in cultivating a stable deposit base for sustainable growth. The evident demand for mortgage products signifies a continued relevance of the mortgage sector amidst broader economic challenges.

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How Vida Bank More than Doubled Mortgage Lending to £348m in H1

Vida Bank's Remarkable Growth: A Testament to Strong Management

Transformative Retail Deposits Fueling Expansion

Increased Profitability Signals Long-Term Viability

The Future Looks Bright for Vida

Key Insights for Financial Institutions

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