April 18, 2018 / 6:21 AM / 7 months ago

BRIEF-Clydesdale Bank to up legacy PPI costs by 350 mln stg

April 18 (Reuters) - Cybg Plc:

* CYBG PLC - INCREASE IN LEGACY PPI COSTS

* TO INCREASE ITS PROVISIONS FOR LEGACY PPI COSTS AS AT 31 MARCH 2018 BY £350 MILLION

* UNDER TERMS OF CONDUCT INDEMNITY DEED WITH NATIONAL AUSTRALIA BANK REMAINING UNDRAWN INDEMNITY AMOUNT OF £148 MILLION WILL BE FULLY UTILISED, WITH BALANCE FUNDED BY CYBG

* CYBG THEREFORE EXPECTS TO RECOGNISE A CHARGE OF £202 MILLION (PRE-TAX) IN ITS INCOME STATEMENT FOR SIX MONTH PERIOD ENDED 31 MARCH 2018

* THIS WOULD RESULT IN A PRO FORMA REDUCTION IN GROUP’S COMMON EQUITY TIER 1 (‘CET1’) RATIO OF APPROXIMATELY 100 BASIS POINTS AS AT 31 DECEMBER 2017

* BOARD HAS APPROVED AN INCREASE TO GROUP’S PROVISION OF £350 MILLION Source text for Eikon: Further company coverage:

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