Spotlight On 2 Banking Stocks: Virgin Money and Barclay Plc

Follow us on Google News:
More on:
 Spotlight On 2 Banking Stocks: Virgin Money and Barclay Plc
Image source: Atstock Productions,Shutterstock

Summary

  • UK banking sector has increasingly adopted technology to innovate under business uncertainty caused by the ongoing covid-19 crisis.
  • A recent report commissioned from Mobiquity saw 40 per cent of banks adopting digital technology to make their businesses greener.
  • The Bank of England also announced plans to make its bond portfolio greener today as part of its
  • Virgin Money stock was trending today after the company announced lower mortgage rates for its residential and buy-to-let customers.

The UK banking sector has increasingly adopted technology such as fintech tools and offering different services since the onset of the pandemic last year as a way to innovate their business models.

According to a recent report commissioned by Mobiquity, a digital transformation entity, about 72 per cent of UK based banks were reported to have adopted digital technology to make their businesses more sustainable as the nation has set a climate target to being carbon neutral by 2050.

The report found 40 per cent of banks were digitising all paper processes, and 41 per cent adopted intelligent automation. Moreover, of the banks which had implemented such measures, about 40 per cent of them benefitted in the form of customer retention, cost savings and growth driven by green initiatives.

UK ‘s central bank, the Bank of England (BoE), also announced plans to make its corporate bond portfolio greener today. The BoE invests £20 billion in corporate debt as part of its corporate bond purchase programme. The move will not include an immediate selloff but will require mandatory emissions disclosures and a roadmap for reducing carbon emissions.

Here will focus two FTSE listed banking sector stocks that were trending today:

  1. Virgin Money UK PLC (LON: VMUK)

UK-based financial services company Virgin Money UK is an FTSE 250 listed stock. The company announced today the reduction of its buy-to-let (BTL)and residential mortgages. It announced its 75 per cent loan-to-value (LTV) 5-year term mortgage with a £995 fee and £1,000 cashback was lowered by 0.14 per cent to 1.60 per cent. Also, it reduced rates for its other LTV offerings as well.

Moreover, it also launched a new BTL product at 3.36, having an 80 per cent LTV and a 2-year term.

(Source: Refinitiv, Thomson Reuters) 

The company’s shares were trading at GBX 203.30, down by 1.12 per cent, while the broader index FTSE 250 stood at 22,387.25, down by 0.02 per cent on 21 May at 14:04 HRS GMT+1. Its five-year average dividend yield was at 0.6 per cent.

Also Read: Why Virgin Money's deal with Life Moments is crucial for its business

  1. Barclays PLC (LON: BARC)

FTSE 100 listed UK banking major Barclays announced today the hiring of a fintech banker, who was previously the managing director of fintech at another UK based banking giant Standard Chartered (LON:STAN). The move comes as Barclays has set sights on expanding its fintech presence in the EMEA as the industry has witnessed significant growth in the region.

Barclays US also recently partnered with fintech startup Amount to launch a buy now pay later (BNPL) service later this year.

(Source: Refinitiv, Thomson Reuters)

The company’s shares were trading at GBX 178.06, down by 0.46 per cent, while the broader index FTSE 100 stood at 7,018.13, down by 0.02 per cent on 21 May at 14:27 HRS GMT+1. Its five-year average dividend yield was 2.6 per cent.

Also Read: Barclays And Natwest Group in Focus as Business Borrowing from Banks Surge Fivefold

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Limited, Company No. 12643132 (Kalkine Media, we or us) and is available for personal and non-commercial use only. Kalkine Media is an appointed representative of Kalkine Limited, who is authorized and regulated by the FCA (FRN: 579414). The non-personalised advice given by Kalkine Media through its Content does not in any way endorse or recommend individuals, investment products or services suitable for your personal financial situation. You should discuss your portfolios and the risk tolerance level appropriate for your personal financial situation, with a qualified financial planner and/or adviser. No liability is accepted by Kalkine Media or Kalkine Limited and/or any of its employees/officers, for any investment loss, or any other loss or detriment experienced by you for any investment decision, whether consequent to, or in any way related to this Content, the provision of which is a regulated activity. Kalkine Media does not intend to exclude any liability which is not permitted to be excluded under applicable law or regulation. Some of the Content on this website may be sponsored/non-sponsored, as applicable. However, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music/video that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music or video used in the Content unless stated otherwise. The images/music/video that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles