Virgin Money UK (ASX: $VUK) Q3 2024 Trading Update

Virgin Money UK (ASX: $VUK) has reported its third quarter 2024 trading update, with the Group delivering continued strategic progress and financial performance in line with the updated guidance given alongside H1. The proposed acquisition of the Company by Nationwide Building Society is expected to complete in calendar Q4 2024, subject to certain regulatory approvals. The Group anticipates remaining well-capitalised as part of the larger Nationwide group.

Executive Commentary on Q3 2024 Trading Update

Virgin Money UK's Chief Executive Officer, David Duffy, stated, 'Our strategy remains on track, with financial performance in line with guidance. We delivered continued growth in deposits and unsecured lending in Q3 and remain focused on developing innovative new products for customers and maintaining good momentum into Q4. The acquisition by Nationwide is progressing as anticipated with the recent CMA clearance, and we expect it to complete in the final quarter of the calendar year.'

Summary of Q3 2024 Trading Update and Outlook

Virgin Money UK (ASX: $VUK) has made significant strategic progress during Q3, with financial performance in line with guidance. The Group expects the proposed acquisition by Nationwide to complete in calendar Q4 2024, subject to regulatory approvals. Virgin Money UK anticipates further transaction-related adjustments upon completion of the acquisition but expects to remain well-capitalised as part of the larger Nationwide group. The Group re-iterates its FY24 guidance and expects 5-10% growth across target lending segments of business and unsecured lending. Additionally, the Group anticipates NIM to be in the range of 190-195bps for FY24, with adjusted cost:income ratio anticipated to be higher in H2 VS. H1. The Board does not intend to announce any further share buybacks or dividends given the proposed acquisition by Nationwide. The proposed acquisition remains subject to certain outstanding conditions, including the receipt of PRA and FCA approval and sanction by the Court, with the expectation of concluding in the final quarter of the calendar year.