Virgin Money Shares Surge Despite Scrapping Dividend

Investors look past surge in PPI claims, annual loss and suspended dividend to send the newly named group's shares up by a quarter 

James Gard 28 November, 2019 | 11:22AM

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Shares in challenger bank Virgin Money UK (VMUK) surged 25% despite making a loss for the full year and suspending its dividend amid higher-than-expected PPI and restructuring costs.    

In its first annual results as Virgin Money, the bank made a pre-tax loss of £265 million after absorbing £804 million of exceptional costs in the year including £433 million of “legacy conduct” costs and PPI payments. The company put aside £385 million in the last quarter to cover PPI claims but received 340,000 “information requests” (the first stage in making a PPI claim) in August alone ahead of the final deadline. Virgin Money said around 9% of PPI claims led to a payout.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Virgin Money UK PLC99.03 GBX11.47

About Author

James Gard  is content editor for Morningstar.co.uk

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