CYBG PLC Annual Report And Accounts

Year Ended 30 September 2016

Delivering on Key Metrics in 2016

Part 1

2.26%

Net Interest Margin (NIM) 226 basis points (bps), up 3bps vs FY2015

6.1%

SME core book grew 6.1% with over £2.2bn of new loans and facilities (+15% vs FY2015)

6.5%

Annual growth in mortgages

Delivering on Key Metrics in 2016

Part 2

12.6%

Well capitalised – CET1 ratio remains strong

POSITIVE JAWS

Income growth 2.6%, underlying costs in line with FY2015 and £33m lower than original guidance

£350m

Investing more than £350m in the next two years to deliver better services and experience for customers and create a more efficient business.

Medium Term Targets Updated - Better and Faster

Part 1

55%-58%

Cost-to-Income Ratio (CIR) 55%-58% by FY2019 (previously below 60% by FY2020)

Double digit Return

Double digit Return on Tangible Equity (RoTE) by FY2019 (previously FY2020)

£100m+

Targeting £100m+ cost savings by FY2019

Medium term targets updated

Part 2

12%-13%

Core Equity Tier 1 (CET1) ratio of 12%-13% reaffirmed

Mid single digit

Loan growth mid single digit percent CAGR (compound annual growth) to FY2019

Inaugural dividend FY17

Targeting modest inaugural dividend in respect of FY2017: in time, 50% payment of earnings