CYBG reports strong progress in first six months as combined business


CYBG reports that, despite tough market conditions, the new, enlarged group has delivered a resilient underlying financial performance in its Interim 2019 results to the end of March 2019, with integration progressing well. 

Following the acquisition of Virgin Money in October 2018, CYBG is the UK’s sixth largest bank. With market-leading digital capabilities, a nationally recognised brand and over six million customers, CYBG is the only challenger bank that serves both retail and SME markets at scale.   

This is the first full set of financial results for Virgin Money and CYBG as a combined business, and comes ahead of the Bank providing details of its future ambitions and strategy at its Capital Markets Day on 19 June. 


  • Pro forma(1) underlying profit before tax of £286m - up 2% on the second half of 2018. 
  • Statutory profit before tax of £42m compared with a statutory loss of £95m in H118. 
  • Total underlying income of £843m is in line with both previous half years in 2018.  Net interest income down 1.1% and non-interest income up 11% year on year. 
  • NIM remains stable at 171bps and the Bank has reaffirmed its guidance for FY19 of 1.65% to 1.70%. 
  • Continued delivery of sustainable customer growth: 
  • Customer deposit growth of 1.2% to £61.7bn. 
  • Mortgage balances up 2.5% to £60.5bn. 
  • SME lending balances up 1.1% to £7.6bn - on track to deliver our £6bn three-year lending commitment by the end of this year. 
  • Unsecured balances are up 4.2% to £4.5bn, with strong growth from the Virgin Atlantic Credit Card. 
  • Continued to take costs out – underlying costs down 3% year on year to £480m, cost income ratio 2%pts lower at 57%. 
  • Cost synergies from the Virgin Money integration being delivered in line with expectations – £33m of annual synergies realised to date. Total annual savings will be a minimum of £150m by the end of FY2021, after an extra £30m of synergies identified since acquisition completed last October. 
  • Strong capital position – CET1 ratio of 14.5%. 
  • Additional provisions below the line of £33m for PPI as a result of increased processing costs from speculative PPI claims as well as some anticipated large one-off acquisition-related charges, including integration costs, Virgin Money’s transaction costs and software write offs. 
David Duffy, chief executive officer of CYBG PLC commented:
“I am pleased to report that the Group has delivered a resilient underlying financial performance during the first half of the year and our three-year integration programme is making good progress. We have already realised £33m of annual run-rate cost synergies and have also increased our forecast of the total cost synergies available by £30m to a minimum of £150m by the end of FY 2021. As expected, profit before tax has been impacted by the significant Virgin Money acquisition and integration costs.
“Our number one priority remains offering our customers attractive products and quality service, and we are pleased to have maintained strong Net Promoter Scores for both our B and Virgin Money brands, while our Clydesdale and Yorkshire Bank NPS continue to improve.
“Despite sustained competition in the mortgage market and a continued uncertain economic backdrop, we have delivered solid growth in our mortgage book and we have seen signs that mortgage pricing has started to stabilise. In our SME business, we have maintained momentum in the origination of new customer facilities and we are also seeing good growth from our Virgin Atlantic credit card proposition. 
“We remain on track to deliver 2019 performance in line with guidance and look forward to updating the market in June on our refreshed strategy and the significant opportunities for our combined business.”