You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Virgin Money

0
Written by: YourMoney.com
10/07/2017
Graham Spooner, investment research analyst at The Share Centre, picks Virgin Money as stock of the week.

Virgin Money, a leading UK challenger bank focused on the domestic customer, is this week’s stock of the week. In July the company, which provides residential mortgages, savings, credit cards and currency products, received a boost from the Prudential Regulation Authority’s review on credit card lending, which was less critical than feared and did not cap interest rates.

In its full-year results in February, the company reported that it beat market expectations for growth in mortgages, savings and credit cards as underlying profits increased by 33% to £213.3m. Interested investors should note that management highlighted the enhancing of its digital capability which could be transformational for the business in the future.

The outlook for banks remains mixed, but investor appetite for the sector has increased over the last year. Investors should appreciate that Virgin Money is not looking to have a big high street presence, as technology has changed the way we – and especially younger people – bank thanks to better IT systems, which in turn should enable them to grow market share. Encouragingly, the firm’s customer base is growing at around 35,000 a month.

Although there are other challenger banks, we regard the company as a safer option and one that will be snapping at the heels of the bigger banks. Therefore, we recommend Virgin Money as a ‘buy’ for those seeking a long-term investment and willing to accept a medium level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
woman in car
Insurance premiums at record levels for young and old drivers

Drivers in nearly all age groups are paying record amounts for their car insurance and a further wave of increases...

Close