Virgin Money UK plc
FormerlyCYBG plc (1 October 2015 – 30 October 2019)
TypePublic
LSE: VMUK
ASX: VUK
FTSE 250 component
IndustryBanking, Financial services
Founded1 October 2015 (1 October 2015)
HeadquartersNewcastle Upon Tyne, England, UK (Registered office)
Glasgow, Scotland, UK (Head office)
Key people
James Pettigrew
(Chairman)
David Duffy
(CEO)
ServicesRetail banking
SME banking
RevenueIncrease £1.716 billion (2022)[1]
Increase £595 million (2022)[1]
Increase £537 million (2022)[1]
Total assetsIncrease £91.907 billion (2022)[1]
Total equityIncrease £6.340 billion (2022)[1]
Number of employees
6,866 (2022)[1]
SubsidiariesVirgin Money UK
Websitevirginmoneyukplc.com

Virgin Money UK plc is a holding company that owns Clydesdale Bank plc, which in turn trades as Clydesdale Bank, Yorkshire Bank and Virgin Money in the United Kingdom. It was formed as CYBG plc by National Australia Bank (NAB) in February 2016, in advance of the divestment of its UK business through a stock market flotation. It is listed on the London Stock Exchange and Australian Securities Exchange; it is also a constituent of the FTSE 250 Index.

History

Formation of CYBG plc

National Australia Bank acquired Clydesdale Bank in 1987 and Yorkshire Bank in 1995.[2] Fred Goodwin, an accountant working for Touche Ross, worked on the acquisition of Clydesdale Bank.[2] In 1995 Goodwin, with little direct banking experience, was appointed deputy CEO of the Clydesdale Bank.[2] Clydesdale Bank and Yorkshire Bank began operating under a single banking licence in the UK in 2005: Yorkshire Bank became a division of Clydesdale Bank but retained its own name for trading purposes.[3]

National Australia Bank confirmed in October 2014 that it planned to exit the UK, and was considering a number of options for Yorkshire Bank and Clydesdale Bank, including a possible stock market listing.[4] Clydesdale Bank and Yorkshire Bank were demerged and placed in a separate holding company, CYBG plc, which was listed on the London Stock Exchange and Australian Securities Exchange for conditional share trading on 3 February 2016 and unconditional trading from 8 February 2016.[5]

Acquisition of Virgin Money

On 7 May 2018 it was reported that CYBG plc had made a £1.7bn all share offer to acquire Virgin Money plc.[6] On 18 June 2018 it was announced that the takeover had been agreed. Arrangements were made for CYBG to license the Virgin Money brand for £12 million a year (later rising to £15 million a year) and to move all its retail customers to the Virgin Money brand over the following three years.[7] The acquisition of Virgin Money plc was completed on 15 October 2018.[8] The assets of Virgin Money plc were legally merged into Clydesdale Bank plc on 21 October 2019.[9]

Rebrand to Virgin Money UK plc

The group's name was changed from CYBG plc to Virgin Money UK plc on 31 October 2019.[10][11]

CEO David Duffy's pay rose by 84% from £1.8m in 2018 to £3.4m in 2019. This was despite an investor revolt in which a third of shareholders opposed the payout, citing the fact that company had suffered its second consecutive annual loss, caused by a £385m charge for mis-sold payment protection insurance. Duffy's increase was largely due to a bonus of £1.3m linked to the 2015 demerger of Virgin Money's predecessor bank, CYBG, from National Australia Bank, as well as incentives from 2016.[12]

Operations

The registered office is in Newcastle upon Tyne, where the Virgin Money UK division is headquartered.[13] The B, Clydesdale Bank, and Yorkshire Bank brands are in the process of being phased out in favour of the Virgin Money brand.[14]

See also

References

  1. 1 2 3 4 5 6 "Annual Results 2022" (PDF). Virgin Money UK. Retrieved 18 February 2023.
  2. 1 2 3 "The sorry history of the near-destruction of investment banking at RBS". UK Business Insider. 6 March 2015. Retrieved 17 April 2017.
  3. ↑ "Employer profile: Yorkshire and Clydesdale Banks". Employee Benefits. 5 May 2009. Retrieved 17 April 2017.
  4. ↑ "NAB bank flags Clydesdale and Yorkshire sale in UK exit". BBC News. 30 October 2014. Retrieved 5 November 2014.
  5. ↑ Taverner, Charlie; Fedor, Lauren (3 February 2016). "Clydesdale Bank share price trades above opening offer as conditional trading starts on IPO after 24-hour delay". City A.M. Retrieved 7 February 2016.
  6. ↑ Mines, Josh (7 May 2018). "Richard Branson-backed Virgin Money receives takeover bid from Clydesdale and Yorkshire Bank owner CYBG". City AM. Retrieved 8 May 2018.
  7. ↑ "Virgin Money bought by CYBG for £1.7bn". BBC News. 18 June 2018.
  8. ↑ "CYBG completes €1.9bn takeover of Virgin Money". The Independent. 15 October 2018. Retrieved 15 October 2018.
  9. ↑ "Clydesdale and Virgin Money are becoming one bank". Virgin Money UK.
  10. ↑ "Virgin Money brand relaunch to commence following completion of single banking license for the combined group". CYBG.
  11. ↑ "CYBG plc re-brands as Virgin Money UK plc". Virgin Money UK plc.
  12. ↑ "Virgin Money almost doubles CEO's pay despite £385m PPI charge". The Guardian. 28 November 2019. Retrieved 24 January 2020.
  13. ↑ "Contact us". CYBG. Retrieved 17 April 2017.
  14. ↑ "Clydesdale and Yorkshire banks re-brand to Virgin Money amid plans for new megastores". Business Live. 21 October 2019. Retrieved 17 February 2022.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.