British challenger bank Virgin Money Holdings saw a 26% rise in first-half underlying pretax profit, helped by growth in the bank’s core mortgages, savings and credit card businesses.

The leadership crisis at Barclays showed no signs of easing today after the frontrunner for the role of chairman reportedly withdrew from the race.

Lloyds Banking Group said Glen Moreno, its deputy chairman and senior independent director, will not seek re-election at the company’s AGM on May 17, having joined the board in March 2010.

Lloyds Banking Group is under mounting pressure to provide an update on the leadership vacuum created by the absence of its chief executive, it was claimed today.