VMUK Lending Rises In Q3, To Repurchase 50- Mln-pound Of Shares

Virgin Money UK PLC (VMUK) on Wednesday announced the commencement of a share buyback to repurchase up to 50 million pounds, in approximately equal proportions between its ordinary shares of 0.10 pound each, listed on the London Stock Exchange and CHESS Depositary Interests, each representing one Share, listed on the Australian Securities Exchange.

The Buyback is expected to commence on Wednesday, 2 August, and would end no later than 22 November. The company added that based on its strong capital position, it anticipates a total of approximately 175 million pounds of buybacks for fiscal 23, with more to follow as it normalizes its surplus capital position by the end of next year.

The lender also released its third quarter trading update revealing customer lending that increased to 72.6 billion pounds, from 72.4 billion pounds at the end of the first half-year and 72.1 billion pounds at the end of the previous third-quarter. Customer deposits increased to 67.3 billion pounds, from 67.0 billion pounds at the end of the first half-year and 64.1 billion pounds at the end of the previous third-quarter.

Net interest margin increased to 1.93 percent, from 1.87 percent in the second quarter of the previous fiscal. The bank continues to expect a NIM of approximately 1.90 percent in fiscal 2023.

Cost income ratio improved to 51 percent, from 52 percent in the year-ago quarter. The bank continues to expect cost:income of 51-52 percent in fiscal 23.

Transitional Common Equity Tier 1 (CET1) increased to 14.9 percent, from 14.7 percent at the end of the first half year and 14.8 percent at the end of the third quarter of fiscal 2022.

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