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).
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.
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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.
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(END) Dow Jones Newswires
November 02, 2017 05:29 ET (09:29 GMT)