Great historical context, so thanks for posting it. Like the...

Great historical context, so thanks for posting it.

Like the author, I have followed the travails of this little bank since it was spun out of NAB.

It has been a journey filled with several episodes of extraneous bad luck factors that have set the business back each time it was gathering some momentum.

But to their credit, the VUK board and management have continued to plug away at taking the business up the modernisation value curve.

And even after the recent share price performance, I still think the stock is significantly undervalued.

On one aspect I don't agree with the author of that piece, namely the requirement for VUK to grow its loan book in order to break out of its trading range.

I don't think that's even needed: all that needs to occur is for a period of a few years of steady state operating conditions (no external crises) during which Cost-to-Income continues to fall and the returns to shareholders (dividends, but preferably buybacks) continue to increase.

If just that happens, then I believe the stock will be awarded with a meaningfully enough re-rating by the market.

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