Yorkshire Bank begins new independent life
![David Duffy chief executive of CYBG](https://www.yorkshirepost.co.uk/webimg/legacy_ash_77876829.jpg?crop=3:2,smart&width=640&quality=65&enable=upscale)
![David Duffy chief executive of CYBG](/img/placeholder.png)
Yorkshire and Clydesdale Bank announced the pricing of its IPO of 219,828,814 ordinary shares at 180 pence per ordinary share implying a market capitalisation of approximately £1.58bn.
The IPO comes a day later than planned after a ratings agency made a last-minute request for information about the lender’s creditworthiness.
Advertisement
Hide AdAdvertisement
Hide AdPrevious owner National Australia Bank said the demerger became effective yesterday and strong demand from international and Australian investors for shares priced at 180p each is expected.
David Duffy, chief executive of Clydesdale and Yorkshire Bank, said: “This is truly a landmark day for CYBG as we move towards becoming an independent banking group for the first time in almost a century and we are delighted to be listing on both the London Stock Exchange and the Australian Securities Exchange.
“CYBG is in great shape to begin this exciting new chapter. With the IPO process successfully behind us, all of our energy will be dedicated to delivering industry leading service for our customers and improved and sustainable returns for our new and future shareholders from around the world.”
Redmayne-Bentley, the independent stockbroker, welcomed the independence of CYBG, which has its registered office in Leeds.
Advertisement
Hide AdAdvertisement
Hide AdKeith Loudon OBE, senior partner, said: “A sound regional bank is always good news for its region.
“For the Northern Powerhouse to have a finance facility not tied to London’s coat tails is a real plus.
“Yorkshire Bank has a great long-term profile in our area. I am sure they will build on this foundation.”
A spokesman for National Australia Bank declined to identify the ratings agency.
Advertisement
Hide AdAdvertisement
Hide AdJim Pettigrew, chairman of CYBG, said: “Today marks a very important milestone in our 177 year history as we begin life as an independent listed company. I welcome our new shareholders and thank them for the confidence they have shown in our business.
“We embark upon this exciting new chapter for CYBG with a strong customer focussed franchise, a large and loyal customer base and a first class management team determined to deliver on our strategy.”
A NEW LIFE
-Yorkshire Bank’s newly independent owner CYBG has around 2.8m retail and business customers.
-At the end of September, it also had customer deposits of £26.3bn and a loan portfolio of £28.7bn.
Advertisement
Hide AdAdvertisement
Hide Ad-The loan book includes mortgages worth £20.5bn and £7bn in business loans.
-The bank’s new product offering 25 months’ free banking to small businesses is proving to be very popular.
-CYBG has set ambitious growth plans for its Yorkshire and Clydesdale brands in their northern and Scottish heartlands.
-Like the rest of the banking industry, the lender was hit by mis-selling scandals but is now looking ahead with confidence.