Half Year Results 

CYBG disappoints on margins and income

CYBG disappoints on margins and income

CYBG (CYBG) is beginning to excel at squeezing out operating costs. The continued reduction in headcount, combined with improved commercial terms renegotiated with third-party suppliers, drove a 7 per cent reduction in underlying costs during the first half. That helped lower the challenger bank's cost-to-income ratio to 64 per cent, closing in on its 55-58 per cent target range. Management reckons full-year costs will come in below £640m, down on the £650m previously guided. But that wasn’t enough to make shareholders forgive the – admittedly pre-flagged – £350m increase in payment protection insurance (PPI) provisions and continued pressure on mortgage yields.  

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