CYBG to slash more costs after Virgin Money takeover and rebrand within two years
Clydesdale and Yorkshire Bank owner CYBG has said it will fire the starting gun on its rebrand to Virgin Money this year as it increased cost-savings targets from the £1.7 billion takeover.
The group will begin by rebranding digital banking arm B to Virgin Money in 2019, to complete by next June, while this will be rolled out to Yorkshire Bank in 2019 and Clydesdale in 2020.
CYBG – which was catapulted into sixth place in the lending market after its Virgin Money acquisition last October – also announced that annual cost savings following the Virgin Money deal will now increase by another £50 million to £200 million.
Ahead of an investor event on Wednesday, it said the wider CYBG holding company will change its name to Virgin Money by the end of the year, with the entire business rebranded by the end of 2021.
It will bring to an end more than 175 years of the Clydesdale and Yorkshire Bank brands.
CYBG chief executive David Duffy said: “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.”
He added: “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.”
The group also outlined targets from the Virgin Money deal, confirming it is aiming to boost its share of the personal current account market by around 40% – with the first full Virgin Money offering launching later this year.
It will launch the first ever Virgin Money business current account by summer 2020 and is again looking to increase it market share by around 40%.
Mr Duffy said: “Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the combination gives us every confidence we will deliver on our targets.”