CYBG Annual Report And Accounts

Year Ended 30 September 2018

David Duffy, Chief Executive Officer

“It has been a landmark year for CYBG, continuing to deliver ahead of market growth and meeting our underlying financial targets in a highly competitive market, while also completing the transformational Virgin Money acquisition in October 2018 following overwhelming shareholder support.”

“In a competitive market, we have delivered an increase in underlying profits, returns and capital generation – all of which means we are delighted to recommend an increase to last year’s inaugural CYBG dividend, payable to all shareholders.

“Clearly Brexit negotiations mean the external political and macro economic environment remains inherently uncertain. We have planned for a period of uncertainty, but it is impossible to ignore the lower levels of business confidence, especially for SMEs, while the final specific outcome of negotiations remains unclear.

“CYBG has a bright future with a unique combination of growth opportunities. We will participate strongly in the RBS alternative remedies schemes, have a stronger competitive edge as the first IRB accredited bank since the financial crisis, can fully leverage our iB platform in the new Open Banking landscape, and, of course, our combination with Virgin Money creates a genuine national competitor to the banking status quo.”

Delivered strong underlying financial performance

£331m

Underlying profit

13%

Growth in underlying performance before tax

10.6%

Underlying RoTE

Delivering sustainable customer growth

4.2%

Annual deposit growth

4.5%

Annual mortgage growth

5.6%

Annual SME core lending growth

Improving efficiency

63%

Underlying cost to income ratio

5.9%

Reduction in underlying costs

£635m

Underlying operating cost

Capital optimisation

10.5%

CET1 ratio

115%

Loan to Deposit ratio

3.1p

Per Share dividend recommended