Bulletin: CYBG Ratings Unaffected By Additional PPI Provisions

LONDON (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today that its ratings and outlook on U.K. bank holding company CYBG PLC (BBB-/Stable/A-3) and subsidiary Clydesdale Bank PLC (BBB+/Stable/A-2) are unaffected by yesterday's announcement that CYBG will increase provisions for legacy payment protection insurance (PPI) costs. CYBG announced on April 17 that, from the end of March 2018, it would be increasing its PPI provisions by an additional £350 million because it has seen a higher-than-expected level of complaints and a rise in the associated costs required to run remediation and redress programs. It stated that this provisioning will fully utilize the remaining £148 million of the undrawn indemnity provided by former parent National Australia Bank. The remaining £202

...LONDON (S&P Global Ratings) April 18, 2018--S&P Global Ratings said today that its ratings and outlook on U.K. bank holding company CYBG PLC (###-/Stable/A-3) and subsidiary Clydesdale Bank PLC (###+/Stable/A-2) are unaffected by yesterday's announcement that CYBG will increase provisions for legacy payment protection insurance (PPI) costs. CYBG announced on April 17 that, from the end of March 2018, it would be increasing its PPI provisions by an additional ú350 million because it has seen a higher-than-expected level of complaints and a rise in the associated costs required to run remediation and redress programs. It stated that this provisioning will fully utilize the remaining ú148 million of the undrawn indemnity provided by former parent National Australia Bank. The remaining ú202 million will be charged to CYBG's income statement for the first half of 2018 (ending on March 31, 2018). CYBG calculated that, on a pro forma basis, this provision would have reduced the group's 12.4% end-December...

Bulletin