Summary: CYBG PLC

As the largest challenger bank in the U.K. by total assets, we primarily compare CYBG against domestic peers--including the six-largest U.K. banks (RBS, Lloyds, HSBC, Barclays, Santander UK, and Nationwide Building Society)--in addition to international peers with useful regional market shares, but with relatively weaker franchise value compared to leading high street banks. CYBG has significantly de-risked the bank since 2012 and refocused it toward retail and SME banking, which we believe has the potential to position it as a stronger competitor to the leading six U.K. institutions. That said, our view of CYBG's business position is constrained by its relatively modest franchise depth and weaker market share compared to its larger domestic and international peers, as well as its

...As the largest challenger bank in the U.K. by total assets, we primarily compare CYBG against domestic peers--including the six-largest U.K. banks (RBS, Lloyds, HSBC, Barclays, Santander UK, and Nationwide Building Society)--in addition to international peers with useful regional market shares, but with relatively weaker franchise value compared to leading high street banks. CYBG has significantly de-risked the bank since 2012 and refocused it toward retail and SME banking, which we believe has the potential to position it as a stronger competitor to the leading six U.K. institutions. That said, our view of CYBG's business position is constrained by its relatively modest franchise depth and weaker market share compared to its larger domestic and international peers, as well as its concentration in U.K. retail and small and midsize enterprise (SME) business banking. CYBG's restructuring program and related deleveraging of non-core assets--now complete--has benefitted its capitalization....

Summary