Tag Archives: VMUK.L

Virgin Money UK (VMUK.L), mcap=£2.2bn, price £1.53 vs £1.34

UK bank at 43% TBV and 4x earnings despite double-digit ROE outlook, excess capital, and aggressive share repurchases. Investors are overly pessimistic about macro concerns and ignore the specifics of the company. Previously Clydedal Bank acquired Virgin Money in 2018. Management with an already proven track record of exceeding targets and over-delivering on cost savings. Timely opportunity as expenses are set to decline in the coming two years from the higher levels of initial investments into new digital strategy. The newly announced repurchase program might be the inflection point in capital return, with the potential for further buybacks.