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.
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
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