Virgin Money (ASX:VUK) share price higher after interim CFO announced

The Virgin Money share price was higher today after the company announced the appointment of a new interim CFO from within the company.

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Virgin Money UK (ASX: VUK) shares have edged higher today after the company announced a new interim chief financial officer (CFO). At the time of writing, the Virgin Money share price is trading 1.52% higher at $1.34. 

What was in the announcement?

The Virgin Money share price is rising as the company announced it has appointed its current group corporate development manager, Enda Johnson, as interim CFO. This will take effect on 15 October and the executive will remain in the role while the company continues its search for a permanent new CFO.  

The interim CFO appointed has held executive roles with Virgin Money UK since 2016 and, according to the company, he has been involved in strategy, corporate finance, corporate affairs, financial planning and investor relations. 

Mr Johnson joined the company in 2015 after working for Allied Irish Banks for 3 years as head of strategy and corporate affairs. Prior to this, he worked on the restructure and recapitalisation of Irish banks following the GFC in a role with the Irish National Treasury Management Agency. The new interim CFO started his career in investment banking with Merrill Lynch, working on client advisory and equity transactions.

The company’s former CFO, Ian Smith, will continue at the bank until 15 October.

Virgin Money UK CEO David Duffy commented on the appointment, stating;

Enda, together with Ian and I, has been instrumental in developing and directing Virgin Money UK’s strategy since the IPO. Enda’s broad banking experience and deep knowledge of our business make him a strong appointment as our interim CFO, providing continuity while we continue our search for a permanent CFO.

About the Virgin Money share price

In September, the Virgin Money share price was removed from the S&P/ASX 100 Index (ASX: XTO) which is a list of the biggest 100 companies on the ASX by market capitalisation.

In its quarterly trading update to 30 June 2020, Virgin Money UK announced that it had not seen any significant provisions or credit losses due to the COVID-19 pandemic, mainly due to government support. At 30 June 2020, the group’s CET1 capital ratio improved by .30% to 13.3%. Customer deposits were up by 4.3% in the June quarter due to lockdown induced savings and the company’s mortgage portfolio shrank by 1% due to lower house purchases during lockdowns.

The Virgin Money share price is up 26.42% since its 52-week low of $1.06, however, it is down 62.25% since the beginning of the year. The Virgin Money share price is down 35.58% since this time last year.

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