Virgin Money UK rises after bank buys back nearly a million of its own shares

By Scott Kanowsky 

Investing.com -- Virgin Money UK PLC (LON:VMUK) rose on Friday after the British lender said it purchased just under one million of its own shares as part of a wider stake repurchase program.

In a statement, the bank said it had bought back a total of 988,000 of its ordinary shares of £0.10 each (£1 = $1.2080).

The announcement comes after Virgin Money UK posted an increase in full-year income earlier this week thanks to a boost from elevated interest rates and credit card spending that helped offset provisions against bad loans that remained above pre-pandemic levels.

Statutory profit on ordinary activities before tax grew by 43% in the twelve-month period to September 30 to £595 million, which the Newcastle-based firm said was based on the higher rate backdrop.

However, Britain's cost of living crisis and the impact it could have on consumer activity led Virgin Money UK to book an impairment charge of £52M. Despite provisions for COVID-19 impacts being unwound, the level of coverage also remained above pandemic levels, which the firm said reflected "worsening macroeconomic forecasts."