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Highlights
- Virgin Money UK PLC (LSE:VMUK) is an FTSE 250 listed digital banking company.
- Its net interest margin expanded around 8 basis points from 1.83% in H1 FY22 to 1.91% during H1 FY23.
- The company's interim dividend per share rose 32% YoY during H1 FY23.
- VMUK has maintained CET1 above 14% through FY23 with an underlying cost to income ratio expected to be in the range of 51-52%.
Virgin Money UK PLC (LSE:VMUK) is an FTSE 250 listed digital banking company involved in the business of providing solutions in the space of financial services as well as banking.
The company expanded its net interest margin by around 8 basis points to 1.91% during the first half of fiscal year 2023 (H1 FY23) from 1.83% in H1 FY22. Also, there has been a 32% year-on-year (YoY) increase in the company's interim dividend per share during H1 FY23.
Through FY23, VMUK has maintained CET1 above 14% with an underlying cost to income ratio expected to be in the range of 51-52%. Also, there has been an increase in the net interest margin from 1.83% in H1 FY22 to 1.91% during H1 FY23, supported by higher rates, structural hedge reinvestment and improved mix. The overall deposits increased 2.6% YoY to £67.0 billion at the end of H1 FY23.
The company has decided to pay an interim dividend of 3.30 pence per share on 21 June 2023.
The company has shown continued strategic momentum in H1 FY23 with digital propositions driving growth in relationship accounts. Moreover, VMUK expects FY23 NIM to be around 190 basis points with an anticipated improved performance in the second half of FY23. Meanwhile, VMUK anticipates returning to operating within the target CET1 range of 13% - 13.5% by FY24. Overall, the company has a high degree of confidence in its long-term plans depending upon the stabilisation of the UK economy.
Top 10 Shareholders
The top 10 shareholders collectively form ~43.64% of the total shareholdings. Virgin Group Holdings Ltd holds the maximum number of shares with ~13.77% shareholding, followed by BlackRock Institutional Trust Company, N.A. with ~5.39% shareholding, as depicted in the chart below.
Stock Price Performance
The stock has witnessed an increase of ~2.79% in the last one month and over the last 6 months, it has decreased by ~10.54%. The stock has a 52-week low and 52-week high of GBX 117.22 & GBX 200.00, respectively and is currently trading below the average of 52-week high-low.
Data Source: EODHD/Others, Analysis done by Kalkine Group
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 13 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
