Clydesdale and Yorkshire Bank owner CYBG PLC (LON:CYBG) plans to rename itself as Virgin Money as part of a revised strategy to “disrupt the status quo” in UK banking.
The group, which bought Virgin Money for £1.7bn last year, said the CYBG holding company will change its name by the end of the year.
READ: Virgin Money's new owner CYBG rallies it improves guidance for 2019 margins
Yorkshire Bank will be rebranded Virgin Money in late 2019, followed by Clydesdale in 2020.
Cost savings from Virgin Money deal revised up
CYBG also said that cost savings from the Virgin Money takeover would rise by another £50mln to £200mln in 2019.
"We have a clear ambition to disrupt the status quo with the new Virgin Money,” said chief executive David Duffy.
“The new group combines the ethos of Virgin, with its distinctive and brilliant customer experience, with CYBG's technology, product expertise and know-how.”
CYBG reaffirmed its 2019 guidance for a net interest margin of 165-170 basis points (bps) and less than £950mln underlying costs.
Like the rest of the UK’s banking sector, CYBG’s NIM – the difference between interest earned on loans and money paid on deposits – has come under pressure from tough competition in the mortgage market.
CYBG outlines 2022 targets
Through its revised strategy, CYBG aims to bring down operating costs to less than £780mln and is targeting a 13% common equity tier 1 (CET1) capital ratio by 2022.
It is also targeting more than 100bps of excess CET1 capital generation per year by 2022, which will be available for “distributions and/or growth.
“Achieving our financial targets will create a significantly more efficient and profitable business with strong and sustainable returns for shareholders,” CEO Duffy said.
“Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the newly combined group gives us every confidence we will deliver on our targets."