Virgin Money UK plc announced a share buyback programme, with an initial repurchase of up to £75 million of its shares listed on the London Stock Exchange and CHESS Depositary Interests (CDIs) listed on the Australian Securities Exchange.

“Subject to trading liquidity, Virgin Money intends to repurchase shares and CDIs in approximately equal proportions,” said Virgin Money.

“The buyback is expected to commence on 30 June 2022 and will end no later than 17 December 2022.”

Virgin Money UK CEO David Duff said: “As Virgin Money continues to deliver against its strategic objectives and maintain a strong capital base, I am pleased to confirm the launch of our inaugural share buyback programme.

“Buybacks will play a significant role in the capital return policy we announced in May, as the company targets profitable growth and distributes excess capital. Today’s announcement marks an important step in that journey.”

The company added: “As the company executes its strategy to improve statutory profitability, drive growth, and enhance capital returns, the buyback programme will play an important role in delivering value for shareholders.

“Virgin Money set out its updated capital framework and approach to shareholder distributions at its interim results on 5 May 2022, outlining a 30% full year dividend pay-out, supplemented with buybacks, subject to an ongoing assessment of surplus capital, market conditions and regulatory approval.

“Following Prudential Regulation Authority approval and with continued robust levels of capital, today’s buyback announcement supplements the 2.5p interim dividend in line with our announced framework.”