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Virgin Money UK PLC on Monday extended its share buyback programme to repurchase up to an additional £50 million.
The bank based in Newcastle, England 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 7.5 pence final dividend, within a 10 pence total annual payout. The company had reinstated its payout in financial 2022 with a 1p final dividend.
Pretax profit for the year that ended September 30 was up 43% year-on-year to £595 million from £417 million. The previous year had suffered from £76 million in ‘legacy conduct costs’, versus just £8 million in the recent year. Financial 2022 also had lower restructuring costs.
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%.
Shares in Virgin Money were up 12% to 162.85 pence in London on Monday morning.
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