In its interim results announcement in May Virgin Money revealed it planned to offer an unspecified buyback. The bank has now said the buyback will begin immediately and be end by December 17.

The announcement comes a month after Virgin Money reported a 338% increase in half-year pre-tax profit to £315 million. The bank also announced an interim dividend of 2.5p per share.

David Duffy, chief executive officer, said: “As Virgin Money continues to deliver against its strategic objectives and maintain a strong capital base, I am pleased to confirm the launch of our inaugural share buyback programme. Buybacks will play a significant role in the capital return policy we announced in May, as the company targets profitable growth and distributes excess capital.”

Virgin Money shares rose 2½p, or 2 per cent, to close at 130¾p, The Times reports.