North East challenger bank Virgin Money has launched its first share buyback programme, with the lender set to repurchase up to £75m worth of shares
In a stock market announcement the group, which has its head office in Newcastle, said it would buy back shares with an initial repurchase of ordinary shares at 10p each.
The buyback is expected to start on June 30 and will end no later than December 17. Following the announcement Virgin Money shares rose around 2.5% to 131.5p.
The buyback comes a month after the business, which also has offices in Leeds and Glasgow, posted a 58% rise in half-year pre-tax profit, on the back of strong growth in unsecured lending, including new credit card customers.
In the interim results it said it had attracted new customers to its current accounts through attractive switching offers, and that it now held about 8% of the UK current account market. Unsecured lending grew 7% to £5.8bn driven by record credit card sales of about 175,000.
David Duffy, chief executive officer, 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.”
Virgin Money added that the buyback programme will play an important role in delivering value for shareholders.
