Virgin Money UK plc is a

holding company A holding company is a company whose primary business is holding a controlling interest in the securities of other companies. A holding company usually does not produce goods or services itself. Its purpose is to own shares of other companies ...

that owns

Clydesdale Bank plc Clydesdale Bank plc is a retail and commercial bank in the United Kingdom. It was formed in Glasgow, Scotland in 1838, and is the only former Scottish bank which retains its UK headquarters in Scotland, following the implosions in 2008 of the Ba ...

, which in turn trades as

Clydesdale Bank Clydesdale Bank ( gd, Banca Dhail Chluaidh) is a trading name used by Clydesdale Bank plc for its retail banking operations in Scotland. In June 2018, it was announced that Clydesdale Bank's holding company CYBG would acquire Virgin Money for ...

, Yorkshire Bank and

Virgin Money Virgin Money is a financial services brand used by two independent brand-licensees worldwide from the Virgin Group. Virgin Money branded services are currently available in Australia and the United Kingdom. The brand formerly operated in South Af ...

in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

. 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 London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St P ...

and Australian Securities Exchange; it is also a constituent of the FTSE 250 Index.

History

Formation of CYBG plc

National Australia Bank acquired

in 1987 and Yorkshire Bank in 1995.

Fred Goodwin Frederick Anderson Goodwin FRSE FCIBS (born 17 August 1958) is a Scottish chartered accountant and former banker who was Chief Executive Officer (CEO) of the Royal Bank of Scotland Group (RBS) between 2001 and 2009. From 2000 to 2008, he pre ...

, an accountant working for Touche Ross, worked on the acquisition of

. In 1995 Goodwin, with little direct banking experience, was appointed deputy CEO of the

and Yorkshire Bank began operating under a single banking licence in the UK in 2005: Yorkshire Bank became a division of

but retained its own name for trading purposes. 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

, including a possible stock market listing.

and Yorkshire Bank were demerged and placed in a separate holding company, CYBG plc, which was listed on the

and Australian Securities Exchange for conditional share trading on 3 February 2016 and unconditional trading from 8 February 2016.

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. 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. The acquisition of Virgin Money plc was completed on 15 October 2018. The assets of Virgin Money plc were legally merged into

on 21 October 2019.

Rebrand to Virgin Money UK plc

The group's name was changed from CYBG plc to Virgin Money UK plc on 31 October 2019. 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 Payment protection insurance (PPI), also known as credit insurance, credit protection insurance, or loan repayment insurance, is an insurance product that enables consumers to ensure repayment of credit if the borrower dies, becomes ill or disabl ...

. 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.

Operations

The registered office is in

Newcastle upon Tyne Newcastle upon Tyne ( RP: , ), or simply Newcastle, is a city and metropolitan borough in Tyne and Wear, England. The city is located on the River Tyne's northern bank and forms the largest part of the Tyneside built-up area. Newcastle is ...

, where the Virgin Money UK division is headquartered. The B,

, and Yorkshire Bank brands are in the process of being phased out in favour of the Virgin Money brand. Virgin Money Gosforth 2021 Bowls Club 2.jpg, Registered office and headquarters of Virgin Money UK division in

File:Clydesdale Bank HQ.jpg, Offices at St Vincent Place,

Glasgow Glasgow ( ; sco, Glesca or ; gd, Glaschu ) is the most populous city in Scotland and the fourth-most populous city in the United Kingdom, as well as being the 27th largest city by population in Europe. In 2020, it had an estimated popul ...

File:Yorkshire Bank.JPG, Offices on Wade Lane, Leeds File:Yorkshire Bank headquarters, Leeds (16th November 2013).JPG, Offices on Woodhouse Lane,

Leeds Leeds () is a city and the administrative centre of the City of Leeds district in West Yorkshire, England. It is built around the River Aire and is in the eastern foothills of the Pennines. It is also the third-largest settlement (by popula ...

References

External links

*
Virgin Money Careers
{{Authority control Holding companies of the United Kingdom Holding companies established in 2016 British companies established in 2016 National Australia Bank Companies listed on the Australian Securities Exchange Companies listed on the London Stock Exchange