DOCSLIB.ORG

For Personal Use Only Use Personal For

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
For Personal Use Only Use Personal For ANNUAL REPORT & ACCOUNTS Our first year as an independent company For personal use only YEAR ENDED 30 SEPTEMBER 2016 CYBG PLC HIGHLIGHTS HIGHLIGHTS DELIVERING GOOD PROGRESS ON KEY METRICS IN DELIVERING ON IN 2016: OUR PLAN: Double digit Return on Tangible Equity (RoTE) by FY2019 2.26% 6.1% (previously FY2020) Net Interest SME core book grew Targeting £100m+ Margin (NIM) 226 6.1% with over £2.2bn cost savings by basis points (bps), of new loans and facilities FY2019 up 3bps vs FY2015 (+15% vs FY2015) Successfully completed Listed on the London demerger and Initial Stock Exchange (LSE) Public Offering (IPO). and the Australian CYBG PLC became an Securities Exchange (ASX). independent company on Cost-to-Income 8 February 2016. MEDIUM TERM Ratio (CIR) 55%-58% 6.5% 12.6% TA R G E T S by FY2019 Targeting modest (previously below Annual growth Well capitalised – CET1 inaugural dividend in U P DAT E D 60% by FY2020) in mortgages ratio remains strong respect of FY2017: in time, 50% payment – BETTER AND of earnings FASTER POSITIVE JAWS Strong franchise, with a Board refreshed Income growth 2.6%, clear strategic agenda and and Executive Loan growth mid underlying costs in line with execution focus, delivering Leadership Team single digit percent FY2015 and £33m lower sustainable growth. strengthened CAGR (compound than original guidance annual growth) to FY2019 Core Equity Tier 1 (CET1) ratio of 12%-13% reaffirmed Delivering on omni-channel B successfully launched strategy – first products and acquiring more £350m launched on digital platform, customers in target providing point of segments. Investing more than £350m in the next two years to deliver differentiation from peers. For personal use only better services and experience for customers and create a Further launches planned more efficient business. for 2017. 2 CYBG ANNUAL REPORT & ACCOUNTS 2016 CONTENTS STRATEGIC REPORT Clydesdale Bank was established in Glasgow in 1838 and Chairman’s Statement 2 Chief Executive Officer’s Statement 4 Yorkshire Bank was founded in 1859 in Halifax. Chief Executive Officer’s Review 6 Both brands are built on strong foundations, Business Model and Strategy 14 dedicated to serving the people, business and Delivering to our Stakeholders 21 Risk Overview 32 communities around us. Financial Results 42 GOVERNANCE Board of Directors 60 Executive Leadership Team 68 Corporate Governance Report 71 Governance & Nomination Committee Report 86 Audit Committee Report 90 Risk Committee Report 99 Directors’ Remuneration Report 104 Directors’ Report 131 RISK REPORT The Group’s Approach to Risk 140 Stress Testing 146 Risk Classes 147 Credit Risk 148 Balance Sheet & Prudential Regulation Risks 169 Regulatory, Compliance & Conduct Risk 192 Operational Risk 194 Financial Crime Risk 196 FINANCIAL STATEMENTS Independent Auditor’s Report 200 Consolidated Financial Statements 206 Parent Company Financial Statements 281 GLOSSARY 291 ABBREVIATIONS 296 OTHER INFORMATION 297 SHAREHOLDER INFORMATION 298 FORWARD LOOKING STATEMENTS 300 Overview (1) For personal use only CYBG PLC (the “Company”) together with its subsidiary undertakings (which together comprise the “Group”), operate under the Clydesdale Bank, Yorkshire Bank and B brands. It offers a range of banking services for both retail and business customers through retail branches, Business Banking centres, direct and online banking, including B, and brokers. Certain figures contained in this document, including financial information, may have been subject to rounding adjustments and foreign exchange conversions. Accordingly, in certain instances, the sum or percentage change of the numbers contained in this document may not conform exactly to the total figure given. The forward looking statements disclaimer can be found on page 300. (1) Formerly known as Pianodove PLC The Forth Bridge, North Queensferry STRATEGIC REPORT For personal use only The Kelpies, Falkirk CHAIRMAN’S STATEMENT Strategic ReportStrategic 2016 has been a landmark year in the long history of our bank as we became independent for the first time since the 1920s. Financial Results This year has heralded big changes for our bank – the We have a strong international shareholder base who have demerger from National Australia Bank (NAB) and IPO at shown great support for our business, a high calibre leadership the start of the calendar year gave rise to CYBG PLC, a team and we have strengthened the Board with Clive FTSE 250 company, holding a dual listing on both the Adamson, David Bennett, Paul Coby, Fiona MacLeod and Tim London Stock Exchange (LSE) and Australian Securities Wade appointed as new independent Non-Executive Exchange (ASX) – and we became an independent Directors, complementing the Board’s expertise and Governance company for the first time since the 1920s. governance oversight. At the same time we have put in place appropriate control and governance standards for a listed I’m delighted to deliver the first Annual Report of CYBG, company, which we benchmark against the market leaders. and I would like to thank the Board, the Executive Leadership Team, and my colleagues throughout the In our first year as CYBG we have demonstrated significant business for their hard work in delivering a successful set of progress in delivering on our plan. Despite the uncertainty results in 2016. Everyone has played a part in making this a in the wake of Brexit, we believe the strength of our landmark year for our business. franchise – a robust capital position, strong asset quality, low cost diversified funding and resilient, scalable ReportRisk Our ambition is straightforward: to become the credible infrastructure – combined with our talent and capability alternative to the big UK banks. We intend to achieve this gives us the flexibility to adapt to the changing operating using our scalable infrastructure to support our growth environment. Our focus for next year is to build on the ambitions, and our enhanced digital capability to streamline progress and achievements of 2016, and continue to build processes and deliver a superior customer experience. a culture that puts the customer at the heart of everything we do. I am confident that we can deliver on our strategy, further improve our performance and enhance returns for CHAIRMAN’S As outlined at our Capital Markets Day in September, our Financial Statements strategy is also straightforward: drive shareholder returns our shareholders. through sustainable customer growth, increased efficiency STATEMENT and capital optimisation. For personal use only Jim Pettigrew | 21 November 2016 2 CYBG ANNUAL REPORT & ACCOUNTS 2016 CYBG.COM/ANNUAL-RESULTS-2016 3 CHIEF EXECUTIVE OFFICER’S STATEMENT I am pleased to report that in our first year as a PLC, CYBG has delivered on our promises to our customers and shareholders. ReportStrategic We have built strong foundations and positive momentum going into 2017. We are optimistic about the future as the only true full service, challenger bank of scale to the status quo in the UK market. Our 2016 results demonstrate the progress we have made on our omni-channel model. The delivery of our strategy will provide Financial Results our journey towards being a more customer focused and an improved branch experience, supported by a strong digital commercially minded bank with continued mortgage loan offering, reflecting the new face of banking and putting growth ahead of the market; our SME book returning to growth customers at the heart of what we do. We have already for the first time in four years; a stable net interest margin; costs embarked on that journey with online account opening, B, and £33m below our initial guidance for the year; a reduced bad debt Apple Pay all going live during the year, and further launches charge; and underlying profit before tax up 39% year on year. planned for 2017. Our strategy remains unchanged – our priorities of sustainable CYBG is perfectly placed to disrupt the market – we have the full customer growth, efficiency and capital optimisation will be service capabilities that no challenger bank can offer, yet we are delivered by a strong customer focused culture, a robust smaller and more agile than the complex structures of the ‘big 5’. Governance approach to change management and investment, and We are well capitalised, have a high quality loan book and prudent development of our omni-channel capabilities, all within a risk appetite, along with powerful, established local brands, now framework of prudent risk management and governance. My joined by an innovative new brand in B which is already focus, and that of my leadership team, is on execution, and our broadening our customer demographic and reach outside of our organic plan is predicated in large part on improving areas of our core regions. performance that we can control, such as costs and efficiency, thereby reducing the risk in delivering on our targets. We firmly believe that our size and scale, strong funding base and balance of assets across retail and business lending give us a solid We will continue to evaluate potential inorganic opportunities to foundation. Our flexibility will also enable us to selectively target ReportRisk enhance our business, provided they are in line with our strategic growth opportunities in specific market segments as they arise objectives and will create value for our shareholders. We have and we remain focused on delivering improved returns for established a set of capabilities (including a scalable digital shareholders while adapting to the new economic
Load more

Recommended publications
  • How to Find the Best Credit Card for You
    How to find the best credit card for you Why should you shop around? Comparing offers before applying for a credit card helps you find the right card for your needs, and helps make sure you’re not paying higher fees or interest rates than you have to. Consider two credit cards: One carries an 18 percent interest rate, the other 15 percent. If you owed $3,000 on each and could only afford to pay $100 per month, it would cost more and take longer 1. Decide how you plan to pay off the higher-rate card. to use the card The table below shows examples of what it might You may plan to pay off your take to pay off a $3,000 credit card balance, paying balance every month to avoid $100 per month, at two different interest rates. interest charges. But the reality is, many credit card holders don’t. If you already have a credit card, let APR Interest Months history be your guide. If you have carried balances in the past, or think 18% = $1,015 41 you are likely to do so, consider 15% = $783 38 credit cards that have the lowest interest rates. These cards typically do not offer rewards and do not The higher-rate card would cost you an extra charge an annual fee. $232. If you pay only the minimum payment every month, it would cost you even more. If you have consistently paid off your balance every month, then you So, not shopping around could be more expensive may want to focus more on fees and than you think.
    [Show full text]
  • How to Be a Savvy CREDIT CARD OWNER
    How to Be a Savvy CREDIT CARD OWNER When used responsibly, credit WHAT TO COMPARE WHEN LOOKING FOR A CREDIT CARD cards can be a useful tool to make major purchases and handle APR The cost of “borrowing” money when you use the card, emergencies. They can help you also known as the Annual Percentage Rate (APR). Be sure to compare both introductory and standard rates. build a solid credit history so you can get loans with low interest Fees such as annual fees, balance transfer fees, late rates, buy cheaper insurance and fees, penalties, over-limit fees and cash advance fees. even get a better cell plan. And Benefits including the type of rewards offered (points they can help you earn rewards for travel/merchandise, cash back, etc.) and what it takes and protect purchases in case of to redeem them, as well as other perks like extended warranties, insurance and travel assistance. theft or damage. WHAT’S IN A NUMBER? Your score matters. Your credit score reflects your credit history and affects how much interest you will pay when you get a credit card. A small difference in rate can cost you hundreds more in interest. Check your credit score. You can request your credit score from the three major credit reporting agencies: Equifax, Experian and TransUnion. Get a free copy of your credit report every year from AnnualCreditReport.com Make sure all the information is accurate and up to date. Your APR can vary by transaction type. Be sure you know what you’re paying and stay ABCs of APRs on top of any rate changes.
    [Show full text]
  • New Credit Card Rules
    WHAT YOU NEED TO KNOW: New Credit Card Rules The Federal Reserve’s new rules for credit card companies mean new credit card protections for you. Here are some key changes you should expect from your credit card company beginning on February 22, 2010. What your credit card company has to tell you When they plan to increase your rate or other fees. Your credit card company must send you a notice 45 days before they can increase your interest rate; change certain fees (such as annual fees, cash advance fees, and late fees) that ap- ply to your account; or make other signifi cant changes to the terms of your card. If your credit card company is going to make changes to the terms of your card, it must give you the option to cancel the card before certain fee increases take effect. If you take that option, however, your credit card company may close your account and increase your monthly payment, subject to certain limitations. For example, they can require you to pay the balance off in fi ve years, or they can double the percentage of your balance used to calculate your minimum payment (which will result in faster repayment than under the terms of your account). The company does not have to send you a 45-day advance notice if you have a variable interest rate tied to an index; if the index goes up, the company does not have to provide notice before your rate goes up; your introductory rate expires and reverts to the previously disclosed “go-to” rate; your rate increases because you are in a workout agreement and you haven’t made your payments as agreed.
    [Show full text]
  • Bow Credit Card Agreement
    CREDIT CARD AGREEMENT (Personal Accounts) By requesting or accepting any Standard MasterCard, account. If we accept a payment from you in excess of your Standard Visa, Platinum MasterCard, Platinum Visa, outstanding balance, your available Credit Limit will not be Platinum Rewards MasterCard, or Platinum Rewards Visa increased by the amount of the overpayment nor will we be account (individually or collectively called “Credit Card required to authorize transactions for an amount in excess account” or “Account”) with Bank of the West, you agree to of your Credit Limit. be bound by all the terms of this Agreement. In this 3. Temporary Reduction of Credit Limit. Merchants, Agreement, the words “you” or “your” mean everyone who such as car rental companies and hotels, may request prior has requested or accepted a Credit Card account with us. credit approval from us for an estimated amount of your The words “we,” “us,” “our,” or “Bank” mean Bank of the Purchases, even if you ultimately do not pay by credit. If our West. If you do not accept this Agreement, you must notify approval is granted, your available Credit Limit will us in writing within 5 days after receipt. Use of your card or temporarily be reduced by the amount authorized by us. If any feature (including a balance transfer) of your Credit you do not ultimately use your Credit Card account to pay Card Agreement shall constitute acceptance of this for your Purchases or if the actual amount of Purchases Agreement. posted to your Credit Card account varies from the 1. Use. Your Standard MasterCard, Standard Visa, estimated amount approved by us, it is the responsibility of Platinum MasterCard, Platinum Visa, Platinum Rewards the merchant, not us, to cancel the prior credit approval MasterCard, or Platinum Rewards Visa card (individually or based on the estimated amount.
    [Show full text]
  • Advertising Guidelines GUIDELINES
    PAYMENT SOLUTIONS ADVERTISINGAdvertising Guidelines GUIDELINES © 2020 Synchrony Financial. All rights reserved. No reuse without prior written consent from Synchrony Financial. Home Table of Contents Understanding Offer Channel Monthly Additional the Guidelines Descriptions Examples Payment Guidance Advertising References © 2020 Synchrony Financial. All rights reserved. No reuse without priorProprietary written andconsent Confidential from Synchrony Financial. Home Understanding the Guidelines Discover More © 2020 Synchrony Financial. All rights reserved. No reuse without prior written consent from Synchrony Financial. Home Understanding Offer Channel Monthly Payment Additional the Guidelines Descriptions Examples Advertising Guidance Guide Overview Guide Overview These Advertising Guidelines provide information to help advertise promotional financing offers associated with Synchrony Bank’s credit card products. For more specific guidance not covered in these Guidelines, please contact your Synchrony Regulatory Representative. Overview Advertising and marketing to prospective customers is one of the most important activities we do. It promotes product awareness, the availability of credit to all creditworthy customers and provides information about our products and services with a view toward urging action on the part of the recipient. In responding to the “call to action” communicated by marketing efforts, customers are relying on the clarity and truthfulness of statements made in the marketing piece. As a valued Synchrony partner, you
    [Show full text]
  • Credit Card Offer
    The following contains detailed information about the important aspects of a credit card offer 1) APR for purchases The interest rate you pay, on an annual basis, if you carry over balances on purchases from one billing cycle to the next. If the card has an introductory rate, you will also see the rate that applies after the introductory rate ends. Multiple interest rates may be listed here. Your rate will depend on your creditworthiness, which is based on your debt, income, credit score, and other factors, such as your history of paying bills on time. 2) APR for balance transfers The interest rate you pay, on an annual basis, if you transfer a balance from another card. Balance transfer fees may apply, even if the balance transfer APR is 0%. If there is an introductory rate, pay attention to when that rate ends and what the new rate will be. 3) APR for cash advances The interest rate you pay if you withdraw a cash advance from your credit card account. Cash advance fees may also apply. Most credit card companies charge interest immediately, starting from the date you get the cash advance. 4) Penalty APR and when it applies Your credit card company may increase your interest rate for several reasons. For example, if you: a. pay your bill late, b. go over your credit limit, c. make a payment that is returned, or d. do any of these on another account that you have with the same company. Be sure to read the terms and conditions of your card to know what can cause your interest rate to go up.
    [Show full text]
  • Credit Cards: Applications and Choosing the Best Card
    ® ® KFSBOPFQVLCB?O>PH>¨ FK@LIKUQBKPFLK KPQFQRQBLCDOF@RIQROB>KA>QRO>IBPLRO@BP KLTELT KLTKLT G1801 Credit Cards: Applications and Choosing the Best Card Sandy D. Preston, Extension Educator Kathy Prochaska-Cue, Extension Family Economist Deciding which credit card is best for you may Grace period is the time period when a balance can be be as simple as carefully reading the application and carried on the account without additional interest being charged, deciding how you’ll use it. typically 20 to 25 days. Usually, no grace period is allowed for cash advances or for any new purchases if you did not pay your bill in full the previous billing cycle. Interest begins as The Disclosure Box soon as you get a new cash advance or buy something if you did not pay your entire bill the last time it came. All credit card applications must include the following The minimum finance charge is the amount of interest information in a disclosure box printed somewhere on the charged if there is a balance, even if the finance charge cal- application: culated from the account balance is less than the minimum. APR (or annual percentage rate) gives the interest rate Minimum finance charges generally are 50 cents. being charged when figured on an annual basis. Both fixed Some cards charge an annual fee. This fee appears on the and variable interest rates are being charged on credit cards monthly bill when due. When charged, annual fees typically today. If variable, know what the rate is indexed to and how range from $20 to $100 annually.
    [Show full text]
  • Bank First, N.A. Consumer Credit Card Agreement
    Bank First, N.A. Consumer Credit Card Agreement This Bank First Credit Card Agreement (the “Agreement”), which includes the Statement of Terms and Conditions, explains the terms that will govern your use of the Bank First Credit Card (“Card”). “Account” means your account with us. In this Agreement, “we,” “us,” and “our” mean Bank First, N.A. and its agents, authorized representatives, successors, and assigns. “You” and “your” mean each and all of the persons who are granted, accept, or use the account and persons responsible for paying the account. About your Card Use When you use, sign or retain the Card, you are agreeing to the terms of this Agreement, which include any subsequent amendments. You certify that the information you have given Bank First for the purpose of obtaining credit is true and complete. You also give us the right to verify and obtain additional information regarding your credit standing. You also agree to repay all debits, finance charges, or other fees or charges arising from the use of the Card. You are responsible and agree to pay us for charges made by yourself and any other person you authorize to use the Card. You may not use the Card for any illegal or unlawful transaction including illegal internet gambling, and we may decline to authorize any transaction that we believe poses an undue risk of illegality. This Agreement is negotiated in the State of Wisconsin and is governed by applicable federal and Wisconsin law. Information, including rates, finance charges, or other terms, in this disclosure is accurate as of May 1, 2019.
    [Show full text]
  • Nationwide Building Society
    NATIONWIDE BUILDING SOCIETY (incorporated in England and Wales under the UK Building Societies Act 1986, as amended) $20,000,000,000 Senior Preferred, Senior Non-Preferred and Subordinated Medium-Term Notes Due Twelve Months or More from Date of Issue ______________ We may issue at various times up to $20,000,000,000 aggregate principal amount outstanding at any time of senior preferred, senior non-preferred or subordinated medium-term notes denominated in U.S. dollars or in other currencies or composite currencies. The notes will be issued in series and each series will be the subject of final terms (each “Final Terms”). We are privately placing the notes on a delayed or continuous basis to the placement agents named below (the “Placement Agents”) or through the Placement Agents to qualified institutional buyers as described in this Base Prospectus under the section entitled “Plan of Distribution.” This document constitutes a base prospectus (“Base Prospectus”) for the purposes of Directive 2003/71/EC (as amended, including by Directive 2010/73/EU) and includes any relevant implementing measure in a relevant Member State of the European Economic Area) (the “Prospectus Directive”). Application has been made to the United Kingdom Financial Conduct Authority (the “FCA”), in its capacity as competent authority for the purposes of the Prospectus Directive and relevant implementing measures in the United Kingdom (the “UK Listing Authority”) for the document to be approved as a Base Prospectus issued in compliance with the Prospectus Directive and relevant implementing measures in the United Kingdom for the purpose of giving information with regard to the issue of notes issued under this program.
    [Show full text]
  • Risk Management for the Period Ended 30 June 2013 (Unaudited) All Amounts Are Stated in £M Unless Otherwise Indicated
    Risk management For the period ended 30 June 2013 (unaudited) All amounts are stated in £m unless otherwise indicated The Disclosure and Transparency Rules (DTR 4.2.7) require that a description of the principal risks and uncertainties are given in the interim financial report in respect of the remaining six months of the financial year. The short term outlook continues to be challenging for the Bank. The Bank has developed a recapitalisation plan (‘the Plan’), which has the key objective to significantly strengthen the Bank’s capital base and to refocus its strategy around its strength in core relationship banking providing current accounts, residential mortgages and savings products to individuals and small business banking. Its successful completion is critical to stabilising the Bank’s position and, as such, is in the long term interest of all stakeholders. Other risks are consistent with those described in the Bank’s risk management section of the 2012 financial statements on pages 54 to 79. 1. Credit risk 1.1 Overview Credit risk is one of the principal risks identified in the risk management framework and is an integral part of our business activities. It is inherent in both traditional banking products (revolving credit lines, loans, mortgages, commitments to lend, and contingent liabilities such as letters of credit) and in 'traded products' (derivative contracts such as forwards, swaps and options, repurchase agreements, securities borrowing and lending transactions). All authority to take credit risk derives from the Banking Group's Board. This authority is delegated to the Chief Executive Officer (CEO) and then on to other individuals.
    [Show full text]
  • Mastercard Application and Solicitation Disclosure
    P.O. Box 123 Effective: 8/03/2020 Annapolis Junction, MD 20701-0123 301-497-7000 • 800-787-8328 towerfcu.org IMPORTANT CREDIT CARD DISCLOSURES Important Note: This document contains disclosures for all three of Tower Federal Credit Union's credit card products. Please ensure that you are reviewing the terms specific to the product for which you wish to apply. 1. World Mastercard.........................................Page 2 2. Gold Mastercard................................................Page 3 3. Empower Mastercard..............................................Page 4 P.O. Box 123 APPLICATION AND SOLICITATION DISCLOSURE Annapolis Junction, MD 20701-0123 301-497-7000 • 800-787-8328 towerfcu.org WORLD MASTERCARD® IMPORTANT CREDIT CARD DISCLOSURES The following disclosure represents important details concerning your credit card. The information about costs of the card are accurate as of July 1, 2020. You can contact us toll free at (800) 787-8328 or the address above to inquire if any changes occurred since the effective date. INTEREST RATES and INTEREST CHARGES: Annual Percentage Rate (APR) 1.99% Introductory APR for 12 months as of account opening. for Purchases After that, your Standard APR will be 10.99% - 17.99% depending on your credit history. This APR will vary with the market based on the Prime Rate. APR for Cash Advances 10.99% - 17.99% depending on your credit history. This APR will vary with the market and Balance Transfers based on the Prime Rate. Paying Interest Your due date is at least 25 days after we mail your billing statement. We will not charge you interest on purchases if you pay your entire outstanding balance by the due date each month.
    [Show full text]
  • Synchrony Bank Rates and Fees Table
    SYNCHRONY MASTERCARD [WF2132730AA] (8/19) DC 24.74 0% INTRO PDF (REV 4/20) DPS APPROVAL SYNCHRONY BANK RATES AND FEES TABLE SYNCHRONY MASTERCARD® ACCOUNT Interest Rates and Interest Charges Annual Percentage Rate 0%* introductory APR through April 25, 2021 (APR) for Purchases After that, your APR will be 24.74% This APR will vary with the market based on the Prime Rate. 24.74% APR for Balance Transfers This APR will vary with the market based on the Prime Rate. APR for Cash Advances 29.99% Paying Interest Your due date is at least 23 days after the close of each billing cycle. We will not charge you any interest if you pay your entire balance by the due date each month. We will begin charging interest on balance transfers and cash advances on the transaction date. Minimum Interest Charge If you are charged interest, the charge will be no less than $2.00. For Credit Card Tips from To learn more about factors to consider when applying for or using a credit the Consumer Financial card, visit the website of the Consumer Financial Protection Bureau at Protection Bureau http://www.consumerfinance.gov/learnmore. Fees Transaction Fees • Balance Transfers Either $10 or 4% of each balance transfer, whichever is greater. • Cash Advance Either $10 or 5% of the amount of each cash advance, whichever is greater. • Foreign Transaction 3% of each transaction. Penalty Fees • Late Payment Up to $39. How We Will Calculate Your Balance: We use a method called “daily balance.” See your credit card account agreement below for more details.
    [Show full text]