CYBG PLC Update on Capability and Innovation Fund
21 February 2019
CYBG PLC Update on Capability and Innovation Fund
CYBG has this evening been informed by Banking Competition Remedies Ltd (BCR) that it has not received a grant from Pool A of the Capability and Innovation Fund, part of the RBS Alternative Remedies Package. The Group remains focused on competing at scale in the Incentivised Switching Scheme that goes live on Monday 25 February 2019. CYBG has a strong position in the UK SME market and will continue with its successful existing SME growth strategy.
The Capability and Innovation Fund was established to increase competition in the UK's SME banking market. The Group believes it put forward the strongest possible case to explain how large scale additional investment in its SME business would accelerate the Group's ability to increase the scale of its business and make it a more effective competitor than any other eligible Pool A bank.
CYBG has a strong existing position in the SME banking market and has both the capability and critical mass to scale its SME proposition to offer UK customers a meaningful alternative to the incumbent banks. The Group will maintain its existing strategic focus on its SME business, continuing to invest in growth and developing new capabilities and propositions for customers.
Separately, CYBG will compete strongly in the Incentivised Switching Scheme and intends to offer an attractive home to former Williams & Glyn SME customers being encouraged to leave RBS. The Board is confident that the Group is well positioned to effectively and efficiently switch RBS customers at scale when the scheme goes live on 25 February 2019. The Capability and Innovation Fund is separate from the Incentivised Switching Scheme and so the Group's participation in this element of the package remains unchanged.
Background
Banking Competition Remedies Limited (BCR) was established to implement the Alternative Remedies Package of measures agreed between the UK Government and the European Commission following the EC approving a number of state aid measures granted to The Royal Bank of Scotland Group plc (RBS). The package consists of an Incentivised Switching Scheme to provide funding to incentivise RBS's Williams and Glyn SME banking customers to switch their business current accounts and the Capability and Innovation Fund to provide grants to help improve banking capabilities for SMEs.
Enquiries:
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Investors and Analysts |
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Andrew Downey Head of Investor Relations |
+44 20 3216 2694 +44 7823 443 150 |
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andrew.downey@cybg.com |
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Jim Davies Senior Manager, Investor Relations |
+44 20 3216 2716 +44 7483 427 671 |
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jim.davies@cybg.com |
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Media (UK) |
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Christina Kelly |
+44 7484 905 358 |
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Senior Media Relations Manager |
christina.kelly@cybg.com |
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Press Office |
+44 800 066 5998 |
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press.office@cybg.com |
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Powerscourt |
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Victoria Palmer-Moore |
+44 7725 565 545 |
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Media (Australia) |
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Citadel Magnus |
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Peter Brookes |
+61 407 911 389 |
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James Strong |
+61 448 881 174 |
Legal disclaimer and forward looking statements
The information contained within this document is deemed by the Group to constitute inside information as stipulated under the Market Abuse Regulation No 596/2014. Upon the publication of this document via Regulatory Information Service, this inside information is now considered to be in the public domain.
The information in this document may include forward looking statements, which are based on assumptions, expectations, valuations, targets, estimates, forecasts and projections about future events. These can be identified by the use of words such as 'expects', 'aims', 'targets', 'seeks', 'anticipates', 'plans', 'intends', 'prospects', 'outlooks', 'projects', 'forecasts' 'believes', 'estimates', 'potential', 'possible', and similar words or phrases. These forward looking statements, as well as those included in any other material discussed at any presentation, are subject to risks, uncertainties and assumptions about the Group and its securities, investments, and the environment in which it operates, including, among other things, the development of its business and strategy, any acquisitions, combinations, disposals or other corporate activity undertaken by the Group (including but not limited to the integration of the business of Virgin Money Holdings (UK) plc and its subsidiaries into the Group), trends in its operating industry, changes to customer behaviours and covenant, macroeconomic and/or geopolitical factors, changes to its board and/ or employee composition, exposures to terrorist activity, IT system failures, cyber-crime, fraud and pension scheme liabilities, changes to law and/or the policies and practices of the Bank of England, the FCA and/or other regulatory and governmental bodies, inflation, deflation, interest rates, exchange rates, changes in the liquidity, capital, funding and/or asset position and/or credit ratings of the Group, future capital expenditures and acquisitions, the repercussions of the UK's referendum vote to leave the European Union (EU), the UK's exit from the EU (including any change to the UK's currency), Eurozone instability, and any referendum on Scottish independence.
In light of these risks, uncertainties and assumptions, the events in the forward looking statements may not occur. Forward looking statements involve inherent risks and uncertainties. Other events not taken into account may occur and may significantly affect the analysis of the forward looking statements. No member of the Group or their respective directors, officers, employees, agents, advisers or affiliates gives any assurance that any such projections or estimates will be realised or that actual returns or other results will not be materially lower than those set out in this document and/ or discussed at any presentation. All forward looking statements should be viewed as hypothetical. No representation or warranty is made that any forward looking statement will come to pass. No member of the Group or their respective directors, officers, employees, agents, advisers or affiliates undertakes any obligation to update or revise any such forward looking statement following the publication of this document nor accepts any responsibility, liability or duty of care whatsoever for (whether in contract, tort or otherwise) or makes any representation or warranty, express or implied, as to the truth, fullness, fairness, merchantability, accuracy, sufficiency or completeness of the information in this document.
The information, statements and opinions contained in this document do not constitute or form part of, and should not be construed as, any public offer under any applicable legislation or an offer to sell or solicitation of any offer to buy any securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. The distribution of this document in certain jurisdictions may be restricted by law. Recipients are required by the Group to inform themselves about and to observe any such restrictions. No liability to any person is accepted in relation to the distribution or possession of this document in any jurisdiction. The information, statements and opinions contained in this document and the materials used in and/ or discussed at, any presentation are subject to change.
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.
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