CYBG Raises National Australia Bank Legacy Conduct Costs Provisions

By Maryam Cockar Features Dow Jones Newswires

Banking group CYBG PLC (CYBG.LN) on Thursday said that it will increase its provisions for National Australia Bank Ltd. (NAB.AU) legacy conduct costs by 403 million pounds ($534.6 million).

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The move is connected to a conduct indemnity deed signed by the two companies, which requires CYBG to finance 9.7% of the provision increase, with the remaining balance funded by former parent National Australia Bank.

As of the end of September, CYBG had GBP671 million reserved for legacy conduct matters.

CYBG said that due to the provisions increase, it will recognize a further charge of GBP39 million for fiscal 2017. The group said that this will affect its common equity Tier 1 capital ratio by about 20 basis points, but that it sees the ratio remaining within its 12% to 13% guidance range.

Shares in CYBG were down 12.50 pence, or 3.9%, to 303.30 pence at 0911 GMT.

Write to Maryam Cockar at maryam.cockar@dowjones.com

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(END) Dow Jones Newswires

November 02, 2017 05:29 ET (09:29 GMT)