5th May 2016 07:48
LONDON (Alliance News) - CYBG PLC on Thursday said former owner National Australia Bank Ltd booked a charge on the business in the first six months of its financial year.
CYBG, which floated in London in February having been spun out of the Australian lender, said National Australia Bank recognised a AUD801.0 million charge in the first half to the end of March, primarily related to payment protection insurance provisions made by CYBG.
CYBG has to fund 9.7% of the provision increase made under the Conduct Indemnity Deed between it and NAB and will therefore book a GBP44.0 million pretax charge for the six months to the end of March.
This will result in a 20 basis point decrease in the bank's common equity tier 1 ratio, it said.
CYBG said it believes the total provision it has made of GBP1.8 billion will be sufficient to cover legacy conduct matters and said NAB's results are unrelated to its current trading.
CYBG shares were down 1.2% to 220.25 pence Thursday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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