The Virgin Money UK Plc (ASX: VUK) share price has rocketed 22% higher at the ASX open this morning.
The astonishing share price jump comes after Virgin Money's FY19 results were released to the market.
Formerly known as CYBG PLC (ASX: CYB), Virgin Money shares are rocketing as investors look to buy a piece of the company after the strong result.
Why have Virgin Money shares surged?
Virgin Money announced a bumper result for the financial year ended 30 September 2019.
The company rebranded from CYBG PLC on 30 October 2019 following the acquisition of Virgin Money Holdings (UK) PLC. The pro forma results are adjusted to remove certain items following the acquisition.
Virgin Money reported "resilient" operating performance as its net interest margin (NIM) came in at guidance of 1.66%.
Underlying profit fell 7% on the prior corresponding period (pcp) to £539 million (A$1,029.49 million) despite cost reductions. Higher restructuring and acquisition costs saw the UK lender report a statutory loss of £194 million (A$370.54 million).
The group's common equity tier 1 (CET1) ratio of 13.3% provides it with plenty of regulatory headroom. However, Virgin Money did suspend its dividend in FY19 in a blow for shareholders.
That hasn't stopped Virgin Money shares from rocketing to the top of the ASX 200 leaderboards in early trade.
Strong growth in Virgin Money's lending and deposits was driven by its Business (+4.5%) and Personal (+16%) segments. The group's Virgin Money integration is underway and expected to deliver further synergies for shareholders.
FY20 guidance is reportedly in line with the group's medium-term strategic and financial targets. A focus on a unique personal rewards and loyalty programme is looking to leverage the wider Virgin Group and improve Virgin Money's earnings in coming years.
The group has now received all required approvals to streamline its operations into the one bank and one brand.
It's obviously been enough to impress shareholders, with Virgin Money shares rocketing 22.49% higher to $3.30 per share at the time of writing.
