CYBG swings into red after being hit by PPI

CYBG CEO David Duffy'Pic Peter Devlin
CYBG CEO David Duffy'Pic Peter Devlin
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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.

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.

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.