Launching the new Virgin Money

Virgin Money becomes CYBG’s sole brand as it lays out plans to disrupt the status quo with new products, as well as updated financial, customer service and market share targets

  • First full Virgin Money personal current account launching in late 2019; aiming for c.40% increase in market-share
  • First ever Virgin Money business current account launching by summer 2020 as part of new Virgin Money branded SME business bank; aiming for c.40% increase in market-share
  • New technology investment in mortgages
  • Targeting top three position in CMA service quality ranking for personal and business customers
  • CYBG PLC name to change to Virgin Money UK PLC in late 2019 – entire business to be using Virgin Money brand by end of 2021
  • Reaffirming FY 2019 guidance of 165-170bps NIM and less than £950m underlying costs
  • Targeting an additional £50m of annual net cost savings on top of existing £150m annual savings from Virgin Money transaction – giving £200m total annual net cost savings by FY 2022

CYBG is setting out its refreshed medium-term strategy at its Capital Markets Day, presenting the first strategic update on the new combined business following last year’s Virgin Money acquisition.

Plans include rebranding Clydesdale and Yorkshire Bank and digital brand B over the next two years to Virgin Money, as well as introducing new Virgin Money branded personal and business current accounts.

David Duffy, CEO, said: “Banking is changing at an unprecedented rate. Consumers are using new technology in every part of their lives. With amazing customer experiences available in other industries, they are rightly demanding so much more from their banks.

“We have a clear ambition to disrupt the status quo with the new Virgin Money. The new Group combines the iconic Virgin brand, with its distinctive and brilliant customer experience, with CYBG’s technology, product expertise and know-how. We believe we have the winning formula that will create a new force in consumer and business banking.

“Our new financial targets will deliver a significantly more efficient and profitable business with strong and sustainable returns for our shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the combination gives us every confidence we will deliver on our targets.”

New Virgin Money current account, launching in late 2019 – with Virgin-focussed reward proposition in development

  • A full-service current account with leading digital capabilities and money management tools using CYBG’s award-winning B technology
  • Current account to evolve and include Virgin-focussed rewards programme with unique offers and personalised benefits only available to Virgin Money customers
  • Targeting top three position in CMA service quality ranking for personal customers
  • Aim to increase personal current account market share from c.2.5% to c.3.5%

New Virgin Money branded business bank – launching by summer 2020

  • Virgin Money to launch new business current account in first half of 2020 with leading online and mobile services for businesses, including digital account opening, money management tools, new fully automated lending and other services such as accountancy and tax management
  • Business banking available nationally, including in Virgin Money stores for the first time, significantly increasing the number of businesses that can be served
  • Digital services backed by expert advice available online, by phone, in branch – with network of over 300 Relationship Managers in 40 business banking centres supporting small and medium sized customers
  • Targeting top three position in CMA service quality ranking for business customers
  • Aim to increase business current account market share from c.3.5% to c.5%

Significant technology investment to create a better home buying experience

  • Mortgage customers – and brokers – to benefit from significant investment in technology across all mortgage channels:
    • new online and mobile Mortgage Hub for consumers, including new Artificial Intelligence mortgage assistant
    • leveraging APIs and wider technology capabilities to enhance broker platform and extend reach to thousands of new broker partners
  • Two new branded offerings for broker market – Virgin Money Everyday for mainstream lending and Virgin Money Expert for more complex lending offers – combining the strengths of both Virgin Money and CYBG in the mortgage market
  • Aim to maintain c.4% mortgage market share

Anticipated rebranding timetable for customers

Today’s announcement also confirms the Bank’s planned timetable for re-branding Clydesdale and Yorkshire Bank and digital brand B to Virgin Money.

The rebrand of the B digital bank to Virgin Money will begin in 2019, to complete in first half of 2020. This includes the rebranding of B’s flagship stores to Virgin Money1. Yorkshire Bank will begin rebrand changes in late 2019 and Clydesdale Bank will begin in the second half of 2020. All Clydesdale and Yorkshire Bank rebranding is expected to be complete by the end of 2021.

The rebranding timetable is subject to the Bank receiving its FSMA Part VII approval enabling it to move to a single banking licence – this is expected to be achieved in October 2019.

In addition to this customer-related rebranding, the name of the CYBG holding company will change from CYBG to Virgin Money UK PLC in late 2019.

Speaking about the rebrand plans, David Duffy added “Our plan for the new Virgin Money means that for the first time there will be a major disruptor that can serve the whole of the UK, combining the very best technology with a great personal service and an absolute focus on being a customer champion. We’re looking to reinvent the role a bank plays in people’s lives.

“Clydesdale and Yorkshire Bank have been serving customers in Scotland and the North of England for over 175 years. Both brands are a by-word for reliability and trust and we understand the emotional attachment customers and local communities have towards them.

“The decision to retire brand names with such long and proud histories is not an easy one. Marrying the values and expertise of these heritage brands with the Virgin Money brand will allow us to realise efficiencies and grow our business throughout the UK.”

Financial targets

Today’s announcement also sets out medium-term growth and financial targets to FY 2022, including:

  • Above market lending growth
  • High single digit growth2 in Personal and Business current accounts and linked savings balances
  • Reconfirmed annual £150m integration synergies from Virgin Money transaction by the end of FY 2022
  • Increased costs savings – c.£50m additional annual savings from further transformation and digitisation savings by the end of FY 2022 – giving £200m total annual savings by FY 2022
  • Total cost base reducing from <£950m in FY 2019 to <£780m by FY 2022, delivering a cost: income ratio in the mid 40%s by FY 2022
  • CET1 ratio of c.13%
  • Statutory Return on Tangible Equity (RoTE) of at least 12% by FY 2022
  • Progressive and sustainable ordinary dividends – c.50% pay-out ratio over time

1B Works in Manchester, Studio B in London and B Birmingham
2Compound Annual Growth Rate

Capital Markets Day 2019 Infographic (Opens in a new window)

For further information, contact:

Media UK Enquiries

Christina Kelly
Senior Media Relations Manager

+44 7484 905 358

Simon Hall
Media Relations Manager

+44 7855 257 081

Press Office

+44 800 066 5998

Notes to Editors

Facts & Figures (as at 31 March 2019)
Size 6th largest retail bank in the UK
Customers 6.4 million
Deposit balances £61.7 billion
Current account balances £14.7 billion
Unsecured personal lending balances £4.5 billion (card balances of £3.6 billion)
Business lending balances £7.6 billion
Mortgage balances £60.5 billion
Total assets £90.2 billion
Retail digital adoption 48%
Branches 236
Virgin Money Giving registered charities >15,000
Virgin Money Giving registered charities >£750 million since launch in 2009
Virgin Money Foundation grant awards £7.79 million since launch in 2015


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.

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.