PPI charge sees Yorkshire Bank owner rack up £95m half-year loss
Clydesdale and Yorkshire bank owner CYBG said a hit from the payment protection insurance (PPI) scandal has caused it to swing into the red.
The group recorded pre-tax losses of £95m for the six months to March, compared with profits of £46m a year earlier, after taking an extra £350m charge for PPI mis-selling claims ahead of the complaints deadline.
CYBG – which is in talks over a potential £1.6bn takeover by Sir Richard Branson’s Virgin Money – estimates it will now see 110,000 walk-in PPI complaints between this August and the deadline in August 2019.
CYBG also put aside another £18m for “other legacy conduct issues”.
On an underlying basis, it posted a 28% rise in half-year pre-tax profits to £158m.