REG - CYBG PLCClydesdale Bank PLC - Final Results <Origin Href="QuoteRef">CYBGC.L</Origin> - Part 10
22/11/2016 07:08
- Part 10: For the preceding part double click ID:nRSV7721Pi
amount of interest received or receivable on assets, net of interest paid or payable on liabilities.
Net interest margin (NIM) * Net interest income as a percentage of average interest earning assets. Net interest income is divided by average interest earning assets for a given period (excluding short term repos used for liquidity management purposes, amounts received under the
Conduct Indemnity and not yet utilised, and any associated income). Comparative disclosures (2015: previously 2.20%) have been amended to conform with the current year's presentation. As a result of the change in approach, average interest earning assets
used as the denominator have reduced by £698m (2015: £464m) and the net interest income numerator by £2.6m (2015: £0.2m).
CYBG PLC
Glossary (continued)
Term Definition
Net promoter score (NPS) This is an externally collated customer loyalty metric that measures loyalty between a Provider, who in this context is the Group, and a consumer
Net stable funding ratio(NSFR) * The total amount of available stable funding divided by the total amount of required stable funding, expressed as a percentage. The Group monitors the NSFR based on its own interpretations of current guidance available for CRD IV NSFR reporting. Therefore,
the reported NSFR may change over time with regulatory developments. Due to possible differences in interpretation of the rules, the Group's ratio may not be directly comparable with those of other financial institutions.
Non-impaired assets 90+ DPD Consist of well-secured assets that are more than 90 DPD and portfolio-managed facilities that are not well secured and are between 90 and 180 DPD.
Operational risk The risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk.
Overall Liquidity Adequacy Rule(OLAR) An FCA rule that firms must at all times maintain liquidity resources which are adequate both as to amount and quality, to ensure that there is no significant risk that its liabilities cannot be met as they fall due. This is included in the Group's "Risk
Appetite" and subject to approval by the Board as part of the "ILAAP".
Past due loans and advances Loans and advances on which repayments are overdue.
Pension risk The risk that, at any point in time, the available assets to meet pension liabilities are at a value below current and future scheme obligations.
PPI redress Includes PPI customer redress and all associated costs excluding fines.
Pre Covered provision amount The amount of any provision(s) relating to "Conduct Matters" raised or increased by CYBG Group between 31 March 2015 and the "demerger date" in respect of which NAB has provided specific support at any time after 31 March 2015 but before the "demerger
date". This was 465m at the "demerger date".
Probability of default (PD) The probability that a customer will default (usually within a one-year time horizon). although the time horizon will change on 1 October 2018 in line with IFRS 9 requirements.
Property revaluation Represents revaluation increments and decrements of land and buildings based on directors' valuations to reflect fair value.
Regulatory capital The capital which the Group holds, determined in accordance with rules established by the PRA
Residential mortgage-backedsecurities (RMBS) Securities that represent interests in groups or pools of underlying mortgages. Investors in these securities have the right to cash received from future mortgage payments (interest and principal).
Restructured loans A restructured loan is where the terms and conditions of a loan contract have been varied that may involve one or both of the following:- the original scheduled repayment contract has been re-written by changing the frequency and pattern of repayments with
a lengthening of the final repayment/maturity profile on a non-commercial basis (e.g. non-market extension of principal repayment period);- the Group has previously made a specific provision for the customer and written off the debt in part or converted
the debt to a changed obligation in exchange for realisable assets not previously held or a debt for equity swap.See also "forbearance".
Retail loans Lending to individuals rather than institutions. This includes both secured and unsecured lending such as personal loans, residential and BTL mortgages, overdrafts and credit card balances.
Return on assets (ROA) Net profit/(loss) attributable to equity holders as a percentage of total assets.
Risk appetite The level and types of risk the Group is willing to assume within the boundaries of its risk capacity to achieve its strategic objectives.
Risk-weighted assets (RWA) On and off balance sheet assets of the Group are allocated a risk weighting based on the amount of capital required to support the asset.
Sale and repurchase agreement("repo") A short-term funding agreement that allows a borrower to create a collateralised loan by selling a financial asset to a lender. As part of the agreement, the borrower commits to repurchase the security at a date in the future repaying the proceeds of the
loan. For the counterparty (buying the security and agreeing to sell in the future) it is a reverse repurchase agreement or a reverse repo.
Scheme of arrangement A scheme of arrangement under Part 5.1 of the Australian Corporations Act between NAB and NABshareholders to effect the demerger
Secured lending Lending in which the borrower pledges some asset (e.g. property) as collateral for the lending.
Securitisation The practice of pooling similar types of contractual debt and packaging the cash flows from the financial asset into securities that can be sold to institutional investors in debt capital markets. It provides the Group with a source of secured funding than
can achieve a reduction in funding costs by offering typically "AAA" rated securities secured by the underlying financial asset.
CYBG PLC
Glossary (continued)
Term Definition
SME lending Lending to non-retail customers, including overdrafts, asset and lease financing, term lending, bill acceptances, foreign currency loans, international and trade finance, securitisation and specialised finance.
Sovereign exposures Exposures to governments, ministries, departments of governments, embassies, consulates and exposures on account of cash balances and deposits with central banks.
Specific impairment provision A specific provision relates to a specific loan, and represents the estimated shortfall between the carrying value of the asset and the estimated future cash flows, including the estimated realisable value of securities after meeting securities realisation costs.
Specific provision to grossimpaired assets * The specific impairment provision on credit exposures as a percentage of gross impaired assets at a given date
Standardised approach In relation to credit risk, a method for calculating credit risk capital requirements using External Credit Assessment Institutions (ECAI) ratings and supervisory risk weights. In relation to operational risk, a method of calculating the operational capital requirement by the application of a supervisory defined percentage charge to the gross income of eight specified business lines.
Statutory basic earnings pershare * Statutory profit/(loss) attributable to ordinary equity shareholders including tax relief on any distributions made to other equity holders divided by the weighted average number of ordinary shares in issue for a given period.
Statutory cost to income ratio * Statutory total operating expenses as a percentage of total operating income for a given period.
Statutory return on assets * Statutory profit/(loss) after tax as a percentage of average assets for a given period.
Statutory ROTE * Statutory profit/(loss) after tax less preference share and non-controlling interest distributions as a percentage of average tangible equity (total equity less intangible assets excluding AT1) for a given period.
Structured entities (SE) An entity created to accomplish a narrow well-defined objective (e.g. securitisation of financial assets). An SE may take the form of a corporation, trust, partnership or unincorporated entity. SEs are often created with legal arrangements that impose strict limits on the activities of the SE. May also be referred to as an SPV.
Subordinated debt Liabilities which rank after the claims of other creditors of the issuer in the event of insolvency or liquidation.
Tier 1 capital A measure of a bank's financial strength defined by CRD IV. It captures Common Equity Tier 1 Capital plus other Tier 1 securities in issue, subject to deductions
Tier 1 ratio Tier 1 capital resources divided by risk-weighted assets at a given date. Tier 1 capital as a percentage of risk-weighted assets.
Tier 2 capital A component of regulatory capital, including qualifying subordinated debt, eligible collective impairment allowances and other Tier 2 securities as defined by CRD IV.
Total capital ratio * Total capital resources divided by risk-weighted assets at a given date.
Total provision to customerloans* Total impairment provision on credit exposures as a percentage of total customer loans at a given date.
Underlying basic earnings pershare * Underlying profit/(loss) attributable to ordinary equity shareholders including tax relief on any distributions made to other equity holders divided by the weighted average number of ordinary shares in issue for a given period.
Underlying cost to income ratio * Underlying total operating expenses as a percentage of underlying total operating income for a given period
Underlying profit after tax attributable to ordinary equity holders Underlying profit before tax of £221m less tax charge of £44m (or plus tax credit, as the case may be), less dividends and distributions of £34m and was equal to £143m (2015: £121m). The underlying tax credit/(charge) is calculated by applying the statutory tax rate of 20% for the relevant period to the taxable items adjusted on the underlying basis. Average tangible equity has been calculated using the tangible equity spot balances at each
of the month ends of the applicable period.
Underlying return on assets * Underlying profit after tax as a percentage of average assets for a given period
Underlying ROTE Underlying profit after tax less preference share and other distributions as a percentage of average tangible equity (total equity less intangible assets excluding AT1) for a given period.
Unsecured lending Lending in which the borrower pledges no assets as collateral for the lending (such as credit cards and current account overdrafts).
Value at risk (VaR) A measure of the loss that could occur on risk positions as a result of adverse movements in market risk factors (e.g. rates, prices, volatilities) over a specified time horizon and to a given level of confidence
Write-down A reduction in the carrying value of an asset due to impairment or adverse fair value movements
* Key Performance Indicators (page 3)
CYBG PLC
Abbreviations
ALCO Assets and Liabilities Committee FCA Financial Conduct Authority. MRT Material Risk Taker
AML Anti Money Laundering FRC Financial Reporting Council NAB National Australia Bank
APRA Australian Prudential Regulatory Authority FSCS Financial Services Compensation Scheme NIM Net interest margin
ASX Australian Securities Exchange FTE Full time equivalent NPS Net promotor score
AT1 Additional Tier 1 HMRC Her Majesty's Revenue and Customs NSFR Net stable funding ratio
BCA Business current accounts IASB International Accounting Standards Board NYSE New York Stock Exchange
BCBS Basel Committee on Banking Supervision ICAAP Internal Capital Adequacy Assessment Process OLAR Overall liquidity adequacy rule
BoE Bank of England IFRS International Financial Reporting Standards PBT Profit before tax
BTL Buy-to-let mortgages ILAAP Internal Liquidity Adequacy Assessment Process PCA Personal current accounts
CAGR Compound Annual Growth Rate IPO Initial Public Offering PPI Payment protection insurance
CET 1 Common Equity Tier 1 Capital IRB Internal ratings-based PRA Prudential Regulation Authority
CIR Cost to income ratio IRHP Interest rate hedging products RMBS Residential mortgage-backed securities
CMA Competition and Markets Authority IRRBB Interest rate risk in the banking book ROA Return on assets
CRD Capital Requirements Directive ISDA International Swaps and Derivatives Association RoTE Return on Tangible Equity
CRE Commercial Real Estate LCR Liquidity coverage ratio RWA Risk weighted assets
CRR Capital Requirements Regulation LDR Loan to deposits SE Structured entity
DB Defined benefit LIBOR London Interbank Offered Rate. SME Small or medium sized entities
DTR Disclosure and Transparency Rules LSE London Stock Exchange SVR Standard variable rate
EBA European Banking Authority LTIP Long term incentive plan TSA Transitional Services Agreements
EIR Effective interest rate LTV Loan to value
EPS Earnings per share MREL Minimum Requirement for Own Funds and Eligible Liabilities
CYBG PLC
Forward looking statements
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',
'believes', 'estimates', 'potential', 'possible', and similar words or phrases. These forward-looking statements 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, trends in its operating
industry, changes to customer behaviours and covenant, macroeconomic and/or geopolitical factors, changes to law and/or the
policies and practices of the BoE, the FCA and/or other regulatory bodies, inflation, deflation, interest rates, exchange
rates, changes in the liquidity, asset position and/or credit ratings of the Group, the status of the UK's membership of
the European Union, and future capital expenditures and acquisitions.
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. Neither the Group nor it's Directors give 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. 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 it's
Directors 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 a 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.
This information is provided by RNS
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