Clydesdale and Yorkshire Bank parent company CYBG will take on the name Virgin Money in a significant rebranding to “disrupt the status quo” of UK banking.
CYBG acquired Virgin Money last year in a £1.7bn deal and has made the decision to adopt its name across its business by the end of 2019, and to become its sole name by the end of 2021.
Furthermore, speaking at its capital markets day yesterday, the lender announced it aimed to make a further £50m in savings from the merger, taking the total savings to £200m by the end of 2022. The bank maintained its 2019 guidance of £950m in costs and, as a result, has targeted costs below £780m by the end of 2022, delivering a cost to income ratio of around 45 per cent.
Commenting, CYBG CEO David Duffy said: “Banking is changing at an unprecedented rate. Consumers are using new technology in every part of their lives. With amazing customer experiences available in other industries, they are rightly demanding so much more from their banks.
“We have a clear ambition to disrupt the status quo with the new Virgin Money. The new Group combines the iconic Virgin brand, with its distinctive and brilliant customer experience, with CYBG’s technology, product expertise and know-how. We believe we have the winning formula that will create a new force in consumer and business banking.
“Our new financial targets will deliver a significantly more efficient and profitable business with strong and sustainable returns for our shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the combination gives us every confidence we will deliver on our targets.”
For the first time since the completion of the merger, CYBG returned to profit last month.
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