Shares of Virgin Money UK rose about 13% on Monday after it announced its annual results and extended its share buyback programme to repurchase up to an additional £50 million.
The banking group said the buyback is an extension of the £75 million share buyback that was first announced in June and takes total buybacks in 2022 to £125 million.
In its financial 2023 results, Virgin Money also declared a 7.5p final dividend, within a 10p total annual payout.
Pretax profit for the year that ended September 30 was up 43% year-on-year to £595 million from £417 million.
Underlying pretax profit fell by 1.5% to £789 million from £801 million, as the year earlier was bolstered by a £131 million impairment release.
Underlying net interest income rose 13% to £1.59 billion from £1.41 billion, while net interest margin increased to 1.85% from 1.62% a year before.
Virgin Money said it expects its financial 2023 net interest margin to be 1.85% to 1.90%.
Common equity tier 1 ratio was 15.0% on September 30, up from 14.9% a year before. Virgin Money expects its financial 2023 CET1 ratio to be above 14%.
Virgin Money UK CEO David Duffy said: “2022 has been a milestone year for Virgin Money.
“We have good momentum while delivering a strong performance and improved returns for our shareholders.
“We’ve changed the game in purpose-led flexible working to create an engaged, high-performing organisation that’s cost-efficient and agile, which will underpin targeted growth through further digital innovation.
“While we have solid credit quality across our lending, we are aware that some customers will have to make difficult decisions in this environment, and we are proactively offering them help and support.”
Reporter: Greg Rosenvinge
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