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Virgin Money to buy back GBP 150 million of its shares

Friday 24 November 2023 13:01 CET | News

Virgin Money announced its plan to buy back a further GBP 150 million of its shares in order to boost the development process of its overall business.

Following this announcement, the London-based bank is set to repurchase the shares by May 16th, according to the statement published earlier this week. The financial institution previously expected to announce a total of GBP 125 million of buybacks, in addition to its overall full-year results. As the guidance for shareholder returns in the current year was lower than the analyses estimated, shares were trading down to 2.2% at 153.4 pence. 

At the same time, Virgin Money took an impairment charge of a sum of GBP 309 million, compared to last year’s results, which were estimated at GBP 52 million. The process was driven by its credit card business. Currently, customers and clients are enabled to continue to pay back their loans on time, in a secure and efficient manner. 

 

Virgin Money announced its plan to buy back a further GBP 150 million of its shares in order to boost the development process of its overall business.

More information on the announcement

According to officials of the company, Virgin Money will also focus on spending more time and resources on digital investment in financial crime prevention, as it sees a priority in keeping its users and partners protected from fraud and other online threats. The company is expected to spend time on achieving a double-digit statutory return, in order to meet the needs, preferences, and demands of its clients while remaining compliant with the requirements and regulations of the industry.

Virgin Money will also aim to address the manner in which multiple challengers’ profit margins have recently lagged behind larger firms and companies, even if all UK lenders have benefited from the Bank of England’s quickest rate-hike series until now. Smaller firms and players in the industry often don’t have the possibility to access several capabilities, such as current account bases, which don’t pay interest. This typically leads to smaller enterprises having to offer higher savings rates in order to attract depositors and fund lending opportunities.

Virgin Money’s past developments

In 2022, the company announced its decision to enter to Buy Now, Pay Later (BNPL) market through the launch of a new offering called Virgin Money Slyce. The firm was set to offer customers a credit card that allowed them to spread repayments over a few months, with installment fees added only if they repaid in nine months or longer. The new capability was developed in partnership with Mastercard and TSYS and it was designed in order to provide clients the possibility to use Slyce for all their BNPL spending. This took place by splitting any monthly spend over GBP 30 across 3, 6, or 12 months to suit their needs. 



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Keywords: investment, acquisition, banking, online banking, digital banking, mobile banking, financial services, financial institutions
Categories: Banking & Fintech
Companies: Virgin Money
Countries: United Kingdom
This article is part of category

Banking & Fintech

Virgin Money

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