Is Virgin Money poised for growth in 2011?

Despite promising much at the beginning of last year, 2010 proved to be rather frustrating for Edinburgh-headquartered Virgin Money's expansion plans. But could 2011 prove more successful?

When the bank announced plans to create 200 jobs in Edinburgh in November, it was seen as a much needed shot in the arm for banking recruitment in Scotland.

However, recruiters working with the bank say that hiring has to-date been far from voracious, and indeed there appear to be no vacancies on its website currently.

"They have been recruiting, with some key hires in risk and technology, but the big numbers spoken about haven't really come into fruition," claims one headhunter who declined to be named because of their relationship with the bank. "It's likely the HQ roles could emerge this year, if they secure a branch network."

Part of the reticence to hire may stem from the fact that Virgin Money missed out on the sale of over 300 RBS branches to Santander last year.

But with the Independent Commission on Banking likely to demand more competition in the UK banking sector, this could work in Virgin Money's favour.

Lloyds Banking Group is preparing to sell of nearly 600 branches by 2013, and Virgin has already been linked with the purchase of Northern Rock.

Even if these don't succeed any time soon, there's likely to be some job opportunities north of the border within Virgin. Chief executive Jayne-Anne Gadhia told the Scotsman recently that the bank intends on growing organically and will look to mop up talent from Scotland's banking sector.