CYBG makes first statutory in five years

CYBG reports its first statutory profit before tax in five years - a profit of £77m for the year to the end of September against a loss of £285m last time.

The group's statutory loss after tax of £164m in the year was impacted by an exceptional charge of £197m, following changes in tax legislation which reduced the corporation tax rate and further restricted the use of historical losses.

Group underlying profit before tax of £221m increased from £159m for the year ended September 2015.

This was primarily due to an increase in operating income, reflecting a reduction in funding costs across both retail deposits and wholesale funding, and a reduction in impairment losses as a result of strong credit performance.

Chairman Jim Pettigrew said: "2016 has been a landmark year in the long history of our bank, as we became independent for the first time since the 1920s.

"Our ambition is straightforward: to become the credible alternative to the big UK banks. We intend to achieve this using our scalable infrastructure to support our growth ambitions, and our enhanced digital capability to streamline process and deliver a superior customer experience." He added: Our focus for next year is to build on the progress and achievements of 2016, and continue to build 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 our shareholders."

Chief executive David Duffy said: "In our first year as a Plc, CYBG has delivered on our promises to our customers and shareholders, building strong foundations for our future growth and positive momentum going into 2017.

"Our Annual Results show a strong financial performance, with underlying profit up 39% and the first statutory profit before tax in 5 years through robust growth in mortgages, SME lending and deposits, supported by our ongoing cost reduction programme.

"We are investing in our future, with an investment programme in the next 2 years of over £350m in part to unlock the potential of CYBG's digital platform which will drive improvements in our customer experience and distribution capabilities.

"As the only true full service, challenger bank of scale, we are perfectly placed to disrupt the status quo in the UK banking market."

At 9:19am:

(LON:CYBG) CYBG Plc share price was -10.85p at 283.85p