CYBG swings into red after being hit by PPI

Clydesdale and Yorkshire bank owner CYBG said it swung into the red with interim pre-tax losses of £95 million against profits of £46 million a year earlier after taking a hit on the payment protection insurance (PPI) scandal.

CYBG CEO David Duffy Pic Peter Devlin

The loss for the six months to March 31 came after CYBG recently took an extra £350 million charge for PPI mis-selling claims ahead of the complaints deadline.

The group - which is in talks over a potential £1.6 billion takeover by Sir Richard Branson’s Virgin Money - estimates it will now see 110,000 walk-in PPI complaints between this August and the deadline in August 2019.

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CYBG also put by another £18 million for “other legacy conduct issues”.

On an underlying basis, it posted a 28% rise in half-year pre-tax profits to £158 million.