Virgin Money UK (ASX: VUK) shares are up 8 per cent to $4.06 today as investors bid the stock higher on the back of the UK general election result that saw the Conservative party win a parliamentary majority. In effect this means it can force Brexit legislation though the parliament and any other legislation that is business friendly in any number of ways.
Virgin Money recently merged with National Australia Bank (ASX: NAB) spin off Clydesdale & Yorkshire Bank (ASX: CYB) with the combined group heavily leveraged to consumer and business demand for credit to invest.
The merger also allows regional lender Clydesdale & Yorkshire Bank to shed a rather tarnished brand for the undoubtedly more popular Virgin Money brand.
In a similar way to some leading Australian financial services groups, Clydesdale & Yorkshire Bank’s brand has been shattered by a series of regulatory scandals where the bank was found guilty of mis-selling financial products to consumers and basically ripping them off.
A definitive Brexit and rebranding then may help the newly-combined group compete more effectively as a modern banking and consumer credit player in what is a competitive UK market.
The post Virgin Money UK shares soar on Brexit hopes appeared first on Motley Fool Australia.
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Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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