Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
No-moat U.K. regional bank, CYBG Plc’s upbeat presentation at its 2019 investor day confirmed the expanded bank is on track to meet previously announced medium-term targets. The priority is on integrating the merger with Virgin Money, reinvigorating the mortgage and SME businesses, cutting costs, and increasing operational efficiency. Management is optimistic on the bank’s prospects, despite challenges in the U.K. economy, and provided upgraded targets on profitability, asset growth, fundin...
No-moat U.K. regional bank, CYBG Plc’s upbeat presentation at its 2019 investor day confirmed the expanded bank is on track to meet previously announced medium-term targets. The priority is on integrating the merger with Virgin Money, reinvigorating the mortgage and SME businesses, cutting costs, and increasing operational efficiency. Management is optimistic on the bank’s prospects, despite challenges in the U.K. economy, and provided upgraded targets on profitability, asset growth, fundin...
No-moat U.K. regional bank, CYBG Plc’s upbeat presentation at its 2019 investor day confirmed the expanded bank is on track to meet previously announced medium-term targets. The priority is on integrating the merger with Virgin Money, reinvigorating the mortgage and SME businesses, cutting costs, and increasing operational efficiency. Management is optimistic on the bank’s prospects, despite challenges in the U.K. economy, and provided upgraded targets on profitability, asset growth, fundin...
No-moat U.K. regional bank, CYBG Plc, impressed with a solid first-half fiscal 2019 result with a pro forma pretax underlying profit of GBP 286 million, down 5% on a year ago. The pro forma profit assumes the Virgin Money acquisition took place effective Oct. 1, 2018 whereas the transaction completed Oct. 15, 2018. We liked the good volume growth, broadly stable net interest margins, and a reduction in the cost base improving the cost/income ratio. Loan losses are trending higher, but off a low ...
No-moat U.K. regional bank, CYBG Plc, impressed with a solid first-half fiscal 2019 result with a pro forma pretax underlying profit of GBP 286 million, down 5% on a year ago. The pro forma profit assumes the Virgin Money acquisition took place effective Oct. 1, 2018 whereas the transaction completed Oct. 15, 2018. We liked the good volume growth, broadly stable net interest margins, and a reduction in the cost base improving the cost/income ratio. Loan losses are trending higher, but off a low ...
No-moat U.K. regional bank, CYBG Plc, impressed with a solid first-half fiscal 2019 result with a pro forma pretax underlying profit of GBP 286 million, down 5% on a year ago. The pro forma profit assumes the Virgin Money acquisition took place effective Oct. 1, 2018 whereas the transaction completed Oct. 15, 2018. We liked the good volume growth, broadly stable net interest margins, and a reduction in the cost base improving the cost/income ratio. Loan losses are trending higher, but off a low ...
A change of government in May 2019 could see the Australian Labor Party running the country. The implementation of Labor’s proposal to ban the refund of surplus franking credits could reduce the income of hundreds of thousands of individual self-funded retirees and self-managed super funds, or SMSFs, in pension phase, if current investment asset allocations are not altered. What could low tax paying individuals and/or the trustees of pension phase SMSFs do, to reduce the impact of the potenti...
A change of government in May 2019 could see the Australian Labor Party running the country. The implementation of Labor’s proposal to ban the refund of surplus franking credits could reduce the income of hundreds of thousands of individual self-funded retirees and self-managed super funds, or SMSFs, in pension phase, if current investment asset allocations are not altered. What could low tax paying individuals and/or the trustees of pension phase SMSFs do, to reduce the impact of the potentia...
No-moat CYBG Plc, impressed with first-quarter fiscal 2019 trading update. Good volume growth, better than expected net interest margins, in line loan losses, and an uplift in expected cost savings stand out. The performance for the three months to Dec. 31, 2018 included Virgin Money from Oct. 1, 2018. Management confirmed good progress with the merger integration and boosted expected annual run rate cost synergies to GBP 150 million from previous forecast of GBP 120 million per year. Despite t...
The merger with Virgin Money provides good earnings upside with the combined entity well positioned to benefit from attractive growth, but we are concerned by risks around merger integration, potentially overpaying and rebranding of the iconic establishment Clydesdale and Yorkshire brands to the more edgy Virgin Money brand. Legacy customer conduct issues continue to disappoint, and uncertainty remains. The focus on product innovation, process simplification, cost reduction, and capital optimisa...
No-moat CYBG Plc, impressed with first-quarter fiscal 2019 trading update. Good volume growth, better than expected net interest margins, in line loan losses, and an uplift in expected cost savings stand out. The performance for the three months to Dec. 31, 2018 included Virgin Money from Oct. 1, 2018. Management confirmed good progress with the merger integration and boosted expected annual run rate cost synergies to GBP 150 million from previous forecast of GBP 120 million per year. Despite th...
No-moat-rated, U.K. regional bank, CYBG Plc, completed the acquisition of Virgin Money Holdings (UK) plc in October 2018, with CYBG’s all share offer valuing Virgin Money at GBP 1.7 billion. CYBG issued 541 million shares with Virgin Money shareholders owning approximately 38% of the combined group. We have incorporated the CYBG share issue and our estimate of Virgin Money’s financials in our earnings forecasts and valuation. Our CYBG valuation of GBX 280, or AUD 4.90 per share, is unchanged...
No-moat-rated, U.K. regional bank, CYBG Plc, completed the acquisition of Virgin Money Holdings (UK) plc in October 2018, with CYBG’s all share offer valuing Virgin Money at GBP 1.7 billion. CYBG issued 541 million shares with Virgin Money shareholders owning approximately 38% of the combined group. We have incorporated the CYBG share issue and our estimate of Virgin Money’s financials in our earnings forecasts and valuation. Our CYBG valuation of GBX 280, or AUD 4.90 per share, is unchanged...
No-moat-rated, U.K. regional bank, CYBG Plc, completed the acquisition of Virgin Money Holdings (UK) plc in October 2018, with CYBG’s all share offer valuing Virgin Money at GBP 1.7 billion. CYBG issued 541 million shares with Virgin Money shareholders owning approximately 38% of the combined group. We have incorporated the CYBG share issue and our estimate of Virgin Money’s financials in our earnings forecasts and valuation. Our CYBG valuation of GBX 280, or AUD 4.90 per share, is unchanged...
We were disappointed with no-moat-rated U.K. regional bank, CYBG Plc’s, messy fiscal 2018 result, despite underlying profit before tax increasing 13% to GBP 331 million. We did not like the massive increase in "below the line" exceptional costs to a whopping GBP 495 million pretax and the soft and uncertain outlook as Brexit remains a key risk. Our fiscal 2019 NPAT forecast for standalone CYBG of GBP 254 million is broadly in line with our previous forecast but we reduce outer year forecasts r...
Clydesdale management has delivered an impressive turnaround since the bank was spun out of National Australia Bank in early 2016. The high fixed cost base has been cut, and we see good prospects for improvements in operational efficiency and, eventually, return on equity, or ROE. Legacy customer conduct issues continue to disappoint, and uncertainty remains. The focus on product innovation, process simplification, cost reduction, and capital optimisation has established a solid platform for gro...
We were disappointed with no-moat-rated U.K. regional bank, CYBG Plc’s, messy fiscal 2018 result, despite underlying profit before tax increasing 13% to GBP 331 million. We did not like the massive increase in "below the line" exceptional costs to a whopping GBP 495 million pretax and the soft and uncertain outlook as Brexit remains a key risk. Our fiscal 2019 NPAT forecast for standalone CYBG of GBP 254 million is broadly in line with our previous forecast but we reduce outer year forecasts r...
No-moat-rated, U.K. regional bank, CYBG Plc, completed the acquisition of Virgin Money Holdings (UK) plc with the court approving the scheme of arrangement. The Boards of CYBG and Virgin Money, agreed to merger terms on June 16, 2018 with CYBG making an all share takeover offer valuing Virgin Money at GBP 1.7 billion. Virgin Money shareholders will receive 1.2125 new CYBG shares for each Virgin Money share held. Following completion, Virgin Money shareholders will own approximately 38% of the co...
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