In MM’s view, one of the best ways to play this is via the downtrodden UK based Virgin Money (VUK) which is listed on the ASX. The British based lender which was once part of NAB has had a tough few years with COVID simply being the cherry atop a pretty sour tasting cake. However things are looking up both in terms of the re-opening theme across Britain, and perhaps more importantly, their aggressive improvement program is starting to deliver tangible results, particularly on the cost side. While UK banks trade on significantly lower valuations than the big 4 enjoy in Australia (i.e. VUK 0.6x price to book v CBA 2x price to book), we are targeting $4 for our holding in the Flagship Growth Portfolio
MM remains bullish VUK targeting $4
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