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Report: CYBG set to take £100M hit from PPI provisions

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Report: CYBG set to take £100M hit from PPI provisions

CYBG PLC is set to take an estimated £100 million hit in fiscal year 2019 as provisions to cover missold payment protection insurance claims as the deadline for PPI complaints looms, The Sunday Times reported, citing analysts.

The bank recently disclosed that it received more requests for information on PPI ahead of the Aug. 29 deadline for claims, adding that it would calculate total costs after the deadline. The total estimated hit that U.K. lenders have taken over the scandal amounts to more than £35 billion, according to the July 18 report.

This could weigh further on CYBG and its shares, which have lost nearly a third of their value in recent weeks, amid heavy competition in the mortgage market and uncertainty surrounding Brexit, the newspaper wrote. The U.K.-based bank is less diversified compared to its larger peers and is more focused on local business and retail customers, which make it susceptible to economic shocks.

The amount for PPI provisions is expected to be presented in November, when CYBG announces its full year results.