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British lender CYBG to take 39 million pound charge for legacy conduct costs
November 2, 2017 / 8:01 AM / 18 days ago

British lender CYBG to take 39 million pound charge for legacy conduct costs

(Reuters) - British lender CYBG (CYBGC.L), spun off from National Australia Bank (NAB.AX)(NAB), will take a pretax charge of 39 million pounds ($51.7 million) to help to cover the cost of the UK’s payment protection insurance mis-selling scandal.

CYBG said on Thursday that it is lifting provisions for so-called “legacy conduct costs” by 403 million pounds as of the end of September.

Under an agreement it has with former parent NAB, CYBG is required to fund 9.7 percent of this provision increase, resulting in the 39 million pound charge, it said.

This will hit CYBG’s 2017 CET1 capital ratio by about 20 basis points for 2017, though the ratio will remain “comfortably within its 12-13 percent guidance range”, the lender added.

($1 = 0.7545 pounds)

Reporting by Noor Zainab Hussain in Bengaluru; Editing by David Goodman

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