Published: November 23, 2023 at 2:40 a.m. ET
Written by Joe Hoppe
Virgin Money UK announced a fall in pre-tax profit due to impairments and adjustment items and launched a 150 million pound ($187.4 million) share buyback.
The financial services company on Thursday reported pre-tax profits of £345m for the year ended September 30, down from £595m in the 2022 financial year. This primarily reflects increased sales.
Written by Joe Hoppe
Virgin Money UK announced a fall in pre-tax profit due to impairments and adjustment items and launched a 150 million pound ($187.4 million) share buyback.
The financial services company on Thursday reported pre-tax profits of £345m for the year ended September 30, down from £595m in the 2022 financial year. This primarily reflected higher operating and administrative expenses, credit exposure impairments and higher restructuring costs.
Underlying operating profit increased by 8% to £1.87bn.
The common stock Tier 1 ratio, an important measure of balance sheet strength, was 14.7%, up from 15.0% a year ago. Net interest margin increased from 1.85% to 1.91%.
Virgin Money said it expects a net interest margin of 1.90% to 1.95% in 2024, with a CET1 ratio within its target range of 13% to 13.5%. It said it was committed to generating double-digit statutory profits over the medium term.
Chief Executive Officer David Duffy said: “With momentum heading into 2024, we are confident in the outlook for our business and have delivered approximately 800 million yen to investors by the end of the three years to 2024. We expect to be able to provide distributions of sterling.” .
Virgin Money has announced that it will begin buying back shares and interests on both the London and Australian Stock Exchanges immediately and will do so by May at the latest.
Email Joe Hoppe at joseph.hoppe@wsj.com.
