CYBG PLC National Australia Bank first half results (3003X)
05 Mai 2016 - 8:00AM
UK Regulatory
TIDMCYBG TIDM11IO
RNS Number : 3003X
CYBG PLC
05 May 2016
5 May 2016
Re: National Australia Bank first half results
We note that National Australia Bank (NAB) has today announced
its results for the six months to 31 March 2016. The results
announcement includes certain financial information in respect of
CYBG PLC.
NAB has published summary balance sheet and income statement
information in relation to CYBG as at, and for the four month
period ended, 8 February 2016. This information relates to the
period in which the CYBG group (CYBG) was owned by NAB. The
information published by NAB does not represent the results and
financial position of CYBG for the period ended 8 February 2016. It
includes the results of transactions unrelated to the trading
performance of CYBG, it has been prepared under different
accounting policies from those adopted by CYBG and it includes
certain costs that were borne solely by NAB. Accordingly it is of
limited value to CYBG's stakeholders.
In addition NAB has recognised a charge of A$801 million in
connection with claims that have been, or are expected to be, made
by CYBG in connection with the Conduct Indemnity Deed between CYBG
and NAB effective 8 February 2016. The claims relate principally to
an increase in CYBG's provision for PPI costs of GBP450 million.
Under the terms of the Conduct Indemnity Deed, CYBG is required to
fund 9.7% of this provision increase, and will therefore recognise
a charge of GBP44 million (pre-tax) in its income statement for the
six month period ended 31 March 2016, with the balance being funded
by NAB. This will impact CYBG's CET1 ratio by approximately
20bps.
The increase in the PPI provision principally relates to:
-- a revised estimate of the expected level of claims and costs
of customer redress subsequent to the closure of the FCA's public
consultation on the application of the outcome of Plevin v Paragon
and the proposed implementation of a time bar for PPI claims, in
line with recent industry practice; and
-- updated forecasts of the costs of administering CYBG's PPI remediation programme.
At 30 September 2015 CYBG had, through a combination of
on-balance sheet provisions and the indemnity provided by NAB,
total cover of GBP2.1 billion for legacy conduct matters. As at 31
March 2016 total cover had reduced by GBP328 million through the
utilisation of provisions. CYBG considers that, based on our
updated assumptions, the total cover remaining of GBP1.8 billion is
sufficient to cover the costs of dealing with legacy conduct
matters.
Further details will be provided when CYBG announces its interim
results on 24 May 2016.
Enquiries:
Investors and Analysts
John Crosse +44 7917 172535
Head of Investor Relations john.crosse@cybg.com
Hany Messieh +61 414 446 876
Investor Relations hany.messieh@cybg.com
Media
Jason Clarke 0800 066 5998
Snr. Media Relations Manager Jason.clarke@cybg.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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