Last checked at 
(Alliance News) - CYBG PLC on Wednesday affirmed guidance for 2019, with its rebrand as Virgin Money UK PLC to be completed by the end of the year.
Shares were 3.9% higher on Wednesday morning at a price of 192.75 pence each, making the stock the second best performer in London's FTSE 250.
UK lender CYBG, which owns Clydesdale Bank and Yorkshire Bank, bought Virgin Money in a GBP1.7 billion deal in 2018.
CYBG's name will change by the end of 2019, it said, with the Virgin Money brand to be relaunched and rebranded late in the year.
CYBG has unveiled a range of new targets, reaffirming guidance for its year ending September 2019 of a net interest margin of 165 basis points to 170 basis points, with the margin at 172 basis points at December 31, the end of CYBG's first quarter.
By the end of financial 2022, CYBG is targeting GBP200 million of net cost savings, operating costs of less than GBP780 million, and a cost to income ratio in the mid 40%s.
CYBG wants a lending mix of around 75% mortgages, 15% business, and 10% unsecured, as well as a cost of risk below 30 basis points. It is also targeting a common equity tier 1 ratio of around 13% by financial 2022.
At the end of its year finished September 2018, CYBG's cost to income ratio was 112%, from 69% the year before. Its cost of risk was 12 basis points, and CET1 ratio 10.5%.
Over time, the bank is also to target a 50% payout ratio, but did not specify an exact timescale.
Chief Executive David Duffy said: "We have a clear ambition to disrupt the status quo with the new Virgin Money. The new group combines the ethos of Virgin, 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.
"Achieving our financial targets will create a significantly more efficient and profitable business with strong and sustainable returns for shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the newly combined group gives us every confidence we will deliver on our targets."
