NORTH-EAST bank Virgin Money has delayed flotation plans amid stock market turbulence.

The Newcastle-based lender had expected shares to start trading this month.

However, bosses say any move will now take place in November at the earliest, as they wait for market conditions to improve.

Virgin hopes to raise £150m from its initial public offering, and is expected to be valued at up to £2bn in the move.

When announcing the flotation plans earlier this month, Virgin, which took over parts of the collapsed Northern Rock, said it would return £50m of taxpayers’ cash, with every one of its 1,700 staff in Newcastle set for a £1,000 shares award.

However, its stock market delay comes as the FTSE 100 Index continues to falter, with falling investor confidence undermining global economic growth.

Earlier this week, lender Aldermore, which works with 160,000 small business and household customers, stopped £800m flotation plans, and Scottish construction firm Miller has also dropped plans to list its housebuilding division.

However, designer shoe brand Jimmy Choo has seen through a £545m float.

Virgin, part-owned by Sir Richard Branson, said it will “continue to progress its plan for an initial public offering, mindful of market conditions.”

Jayne-Anne Gadhia, Virgin Money’s chief executive, added: “We are continuing to perform strongly and remain focused on delivering a successful initial public offering as soon as market conditions allow.”

In 2011, Virgin paid the Government £747m for the so-called ‘good bank’ element of Northern Rock, with the taxpayer retaining the toxic mortgages that led to the Rock’s bail-out.

Its initial flotation announcement came just days after it was revealed The Northern Rock Foundation charity, inherited by Virgin, was likely to close.

The firm took on responsibility for the foundation, which has given more than £200m to good causes over the past 17 years.

Bosses previously said they were willing to donate £1m a year via the foundation as long as other North-East companies made up the £3m annual shortfall towards the charity’s annual £4m needs.

However, after consultation with local charities and potential funders, it became clear attracting the additional cash was not possible.

Referring to the flotation, Kevan Jones, Labour MP for North Durham, previously told The Northern Echo the move was a disgrace and called on bosses to use the cash boost to support local charities.

He added: “This shows that the age of greed has not gone away.

“The idea that Virgin Money can only give a paltry £1m to charity and allow the Northern Rock Foundation to close when they stand to make multi-millions of pounds is a disgrace.”