CAPITAL MARKETS DAY CYBG PLC
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CAPITAL
MARKETS
DAY
CYBG PLC
1
WELCOME AND INTRODUCTION
Why we are here… …agenda for the day
08:30 Strategic overview David Duffy
Present refreshed group
strategy 08:50 Virgin Money brand Helen Page
09:05 Business Gavin Opperman
Update on exciting 09:25 Personal Fergus Murphy
brand opportunities
09:45 Mortgages Hugh Chater
10:05 Q&A All
Outline new divisional
structure and plans 10:30 Coffee break
11:00 Transformation Fraser Ingram
Explain how we will 11:20 Financials Ian Smith
transform the business
11:40 Strategic ambition David Duffy
Provide clear medium-term 11:50 Q&A All
strategic and financial targets 12:30 Lunch
2
STRATEGIC
OVERVIEW
David Duffy
3
3
WE HAVE THE PLATFORM TO DISRUPT THE STATUS QUO…
With our complementary capabilities… …we are well positioned to disrupt
Loyal regional
‐ Iconic brand – nationally
customer base
and digital
+ Trusted, national
brand
recognised; Virgin partnership
opportunities
proposition
Open Banking
Larger 6.4m ‐ Digital leadership, a single Open
digital platform + combined Banking platform to support all
customer base 6.4m customers
180 years of
‐ People with Purpose who
banking expertise + Innovative disruptor energetically deliver the best
customer experiences
Regional
coverage + Complementary
presence
‐ National coverage and scale
Full Personal Strength in
‐ Full suite of Personal and Business
& Business + mortgages and
products
product set credit cards
4
…WITH A STRATEGY TO MITIGATE INDUSTRY PRESSURES…
A muted economic outlook… …offset by self-help opportunities
Real GDP growth (%)
1.8 1.8 1.6 2.0 2.1 Significant
1.4 1.3 Mortgage
margin and cost opportunity
2016 2017 2018 2019 2020 2021 2022 funding cost through scale
Note: our targets pressures and digitisation
Average base rate (%) assume only one rate
rise to FY22 Margin
2.0%
Digital accretive asset
1.0% competition & deposit
growth
0.0%
2019 2020 2021 2022
Brexit and Enhance our
Unemployment (%)
economic leading digital
uncertainty proposition
4.9 4.4 4.1 3.8 3.8 3.7 3.6
2016 2017 2018 2019 2020 2021 2022
Forecasts: Oxford Economics, 13 June 2019 5
…AND A CLEAR TRACK RECORD OF DELIVERY
Strong delivery credentials… …with a low-complexity integration plan
Efficiency Part VII process completion expected October 2019
• Successful cost reduction and
efficiency programme delivery
Digital VM Personal c.100k VM current accounts
Current Transfer via Current Account
• Build, integration and scaling of our Accounts
digital platform Switching Service (CASS)
• First to offer account aggregation to VM Personal & Bulk redirection service:
customers using secure Open APIs Business industry process for accounts
• First to offer mobile cheque clearing Savings not covered by CASS
VM Mortgages
Project Management and Fixed Renewal on target platform
• Complex NAB separation programme Term Savings
• IRB programme delivery
• Migration of MBNA cards CYBG Personal CYBG accounts migrate to
Credit Cards the TSYS platform
6
OUR PURPOSE AND AMBITION DRIVE OUR STRATEGIC PRIORITIES…
Our purpose: Making you happier about money
Our strategic ambition: To disrupt the status quo
Delighted Super
Pioneering Discipline and
Our strategic priorities: customers and straightforward
growth colleagues sustainability
efficiency
Powered by our:
Highly trusted brand People with purpose Digital leadership
Delivered brilliantly in
line with our values:
7
…TO CREATE SIGNIFICANT SHAREHOLDER VALUE…
…drive our key …delivering strong returns
Our strategic priorities…
financial targets… and business momentum
Reshape balance sheet mix: • 75% mortgages Ambition for
Pioneering
• grow margin accretive assets • 15% business asset mix in
>12%
growth medium term
• grow low cost relationship deposits • 10% unsecured
Statutory RoTE by FY22
Delighted • Enhance the customer experience
• Above system asset growth
customers and • Encourage digital adoption • High single digit CAGR in
colleagues • Colleagues delivering our purpose relationship deposits >100bps
Realise integration synergies Significant efficiencies by FY22:
Super • CET1 generation
• c.£200m net cost savings
straightforward • Digitise and simplify the business p.a. by FY22
•
…DELIVERED THROUGH OUR CLEAR DIVISIONAL PLANS
Business Personal Mortgages
• Expand our relationship • Transform our • Digitise the customer
proposition nationally relationship proposition experience
• Launch Virgin Money for • Enhance the customer • Maximise relationships to
business experience create brand advocates
• Enhance the customer • Deepen our customer • Optimise the franchise for
experience relationships value
UNDERPINNED BY OUR
Highly trusted brand People with purpose Digital leadership 9
THE VIRGIN
VIRGIN MONEY
MONEY BRAND
BRAND
HHeel lee n PPaaggee
10TOGETHER WE CREATE A BIGGER, BOLDER VIRGIN MONEY…
A STRONGER BANK ENHANCED OPPORTUNITY
• 6.4m customers • Unified branding
BETTER THAN BOTH
• National network • Wider customer appeal
• Strong digital • Relationship opportunity
capability
• Customer advocacy
• Full product set growth
• 100% Brand awareness
UNDERPINNED BY AN ICONIC BRAND
• 87% Brand consideration
Source: Incite Consulting, October 2018 11…WITH ALL OF THE ELEMENTS NOW IN PLACE TO FULLY LEVERAGE
THE OPPORTUNITY WITHIN OUR BRAND…
Customer scale
instant SCALE
Current A/C relationship - A captive audience of 6.4m customers
with a full product range on which to build
a primary banking relationship
Business banking -
Digital capability
national REACH
National network UK-wide presence supporting national
acquisition beyond traditional heartlands
National brand
beyond BANKING
Loyalty mechanism - 26m UK customers with an existing Virgin
relationship, open to other Virgin brands
- No or limited capability Partial capability Full capability Capability in development
12…THAT LIVES WITHIN A FAMILY OF BRANDS COVERING A WIDE
RANGE OF CONSUMER AND BUSINESS SECTORS
SUPPORTING GROWTH
Virgin Money’s growth will benefit from:
• the breadth of Virgin relationships
• the diverse range of history and
expertise within the Virgin companies
• the pipeline of new activity in place
for 2020
13THE VIRGIN BRAND IS PROVEN TO CREATE
TANGIBLE COMMERCIAL VALUE
Virgin companies build awareness quickly and demonstrate
1 SCALES FAST rapid growth potential
The more Virgin companies a customer uses, the higher
2 LOYAL COMMUNITIES openness and preference they show for Virgin overall
Virgin companies have demonstrated an ability to charge a
3 COMMANDS A PREMIUM 10%+ premium vs. competitors for similar products & services
Research shows rebranding a business as Virgin could
4 BOOSTS MARKET SHARE deliver an immediate uplift of up to 42% in consumer choice
Marketing spend can be up to 10x as efficient at driving
5 MARKETING EFFICIENCY consideration for Virgin companies versus peers
6 ATTRACTS & RETAINS TALENT Virgin companies can show an employee churn rate >20%
lower than their industry peers
Source: Project Intellect, independent research on Virgin brand and individual Virgin company analysis provided by Virgin Enterprise Limited 14ATTRACTING AN ADVENTUROUS, OPTIMISTIC AND MORE
AFFLUENT AUDIENCE FOR VIRGIN MONEY TO ENGAGE
AN AFFLUENT WITH HIGHER AND A GENERAL WITH WHOM CYBG ARE
CUSTOMER SET HOUSEHOLD INCOME ZEST FOR LIFE ALREADY CONNECTED
Adventurous in the
c.20% of active CYBG
44% +20%
things they buy and do
current account customers
Strive to be at the are currently transacting
forefront of new trends with Virgin companies
of ABC1 adults profess an higher household income Willing to pay more for Spending
affection for the brand for brand aficionados a brand they love
c.£600m in 2018
This represents a potential Prioritise convenience
market of c.10m over price With an average Virgin
professional people product holding of
More likely to be
entrepreneurial 2.5
Source: Virgin Growth Audiences, UK Profiles, 2018, ONS census and socio demographic information and CYBG transactional current account data for 2018.
ABC1 defined as managerial, administrative and professional members of the population
15THE VIRGIN MONEY BRAND ALREADY RESONATES WITH BOTH
CUSTOMERS AND PROSPECTS…
PERSONAL & MORTGAGE BUSINESS
Perceptions of Virgin Money Perceptions of Virgin Money
FUTURE NEW &
OPTIMISTIC INSPIRING MODERN INNOVATIVE
FOCUSED DIFFERENT
Source: CYBG, SME Brand Perception Research, 2018 and VM Brand Proposition Development Research, 2019
16…AND WE ARE TAKING A PURPOSE-LED APPROACH
TO DRIVE SMART DISRUPTION IN OUR SECTOR…
Empowering Personal Ambitious Rooted in what
we do
PURPOSE-LED BRANDS DRIVE
Making you happier about money DEEPER CONNECTIONS
• Strategic alignment & a
Proactive Positive change strong corporate culture
• Enhanced customer and
Example purpose statements of other Virgin companies: partner affinity
Everyone leaves feeling better
• Increased brand trust
An epic sea change for all
and sentiment
• Higher consideration
Building connections that really matter Everyone can take on the world
through standing apart
Source: Accenture, December 2018
17…WITH A UNIQUE OFFERING THAT COMBINES BRILLIANT BANKING
WITH REWARDS FOR LEADING A LIFE MORE VIRGIN…
BRILLIANT BANKING A LIFE MORE VIRGIN
NOBODY DOES IT LIKE VIRGIN NOBODY CAN DO IT EXCEPT VIRGIN
DELIGHTED CUSTOMERS SUPER EFFICIENT PEOPLE WITH PURPOSE FORCE FOR GOOD UNIQUE EXPERIENCES
PERSONAL
BUSINESS
MORTGAGE
PRODUCTS CHANNELS PEOPLE GIVING REWARDS
18…DELIVERED THROUGH AN UNMISTAKABLY VIRGIN
EXPERIENCE THAT CUSTOMERS WANT TO BE PART OF…
1: Digital 2: Spatial 3: Human
VIRGIN MONEY
embed the ‘Virgin personality’ create feelgood start with conversations
within every interaction physical experiences not transactions
VIRGIN COMPANIES
BEST PRACTICE
OUR AMBITION: DELIVER A SUPERIOR EXPERIENCE, TOP 3 IN THE CMA CUSTOMER SERVICE RANKINGS BY FY22
19…WITH A BOLD NEW BRAND IDENTITY AS A
POWERFUL SIGNAL OF CHANGE
A modern makeover
for a trusted brand that
builds from the joy of
our new purpose and
celebrates a different
approach to banking
20WE WILL TAKE A PHASED APPROACH TO OUR
RELAUNCH, REBRAND AND MIGRATION…
PERSONAL PERSONAL BUSINESS
NEW
New VM current a/c New VM New VM
CUSTOMERS and linked savings personal loan current a/c
New brand launched once a critical
mass of front book products re-branded
Topco Soft Full launch
Naming Launch H2 ‘20 2021
H1 ‘20
Q4 ‘19 End ‘19
GROUP ENTITY B YB VM & CB REBRAND TAIL
REBRAND &
Renamed Virgin Full rebrand, Rebrand of network VM migration, CB Mortgages and savings
MIGRATION Money UK PLC including stores & back book starts rebrand starts rebranded at maturity
21… AND WE’LL LAUNCH WITH AMBITION, RAPIDLY
ACCELERATING AWARENESS AND CONSIDERATION
HIGH PROFILE MEDIA BOLD MESSAGES DIGITAL CONNECTION
22BUSINESS
Gavin Opperman
23DELIVERING GROWTH IN AN EVOLVING MARKET
Business banking market is changing… …and we have been successfully growing
Core SME lending balances
Economy
£bn
• GDP growth below long-term trend
• CYBG SME health index near 5-year low;
Brexit impacting business confidence +20%
Government / Customer behaviour 7.2
regulatory
• Complex demands need 6.8
• Ring-fencing impacts human support
• RBS Alternative Remedies • Fintech entrants expanding 6.4
customer choice
6.0
Digitisation Competition
• Greater demand for digital • Concentrated market - 90% FY15 FY16 FY17 FY18
• Open Banking supports share for big 5 banks
switching • Incumbents and disruptors
During the period a sizeable portfolio of non-core assets have also been run-off
address different customers
24WE ARE A RECOGNISED FULL SERVICE BUSINESS BANK…
Established franchise, regional scale… …with a targeted market focus
• Compete where we have knowledge,
c.3.5% market share of BCAs (national)
products and deep relationships, e.g:
Dedicated
• Agriculture
expertise,
market share of BCAs (regional) • Healthcare
>10% in Scotland and Yorkshire
broad
product • Renewables
capabilities
• Expertise and overall proposition enables
c.200k customers - half have been with CYBG >10 yrs
value capture
• Proven risk management capability and
>300 relationship managers – avg. tenure of 14 yrs strong asset quality
Selective • Don’t compete where we lack expertise:
£10.4bn deposits – average cost of c.40bps - H1 19 approach • Large institutions
• Speculative development
Commercial Real Estate
£7.6bn assets – average yield of 417bps - H1 19 • Complex derivatives
25…WITH STRONG SECTORAL RELATIONSHIPS AND EXPERTISE…
£7.6bn diversified lending book… …with strong relationship deposits
H1 19
Construction Other
(1) • Majority of deposits from trading business accounts:
8%
Transport and storage
2% Agriculture • BCAs provide stable funding
19%
4%
Entertainment • Linked accounts provide low-cost funding
2%
• Digital and spatial key to servicing customers
CRE Retail & wholesale
11% trade
CRE: 8% 10%
Housing • Relationship deposits are a valuable component of
Associations: 3%
Hospitality Group funding:
8% Gov’t, health and
education • Sticky deposits with low liquidity requirements
Manufacturing 12%
10% Business services
• Lower average cost than personal deposits
14%
Assets – Product Split Liabilities – Product Split
0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%
Term Lending Overdraft Asset Finance Invoice Finance Trade Finance On demand Non-interest bearing Savings Term Deposits
26…AND A SERVICE MODEL DESIGNED TO MEET CUSTOMER NEEDS
Customer segmentation… …drives service model needs
• Digital self-service
• Turnover up to £2m Direct
Small
• Supported by named
• Borrow up to £500k telephony relationship
• Ease of access is key manager (RM)
• Local, in-person RM across
Local RM 40 business centres in UK
• Turnover > £2m to c.£25m • Supported by UK phone
• Borrow £250k - £10m Commercial
and local treasury teams
• Local support required • Agricultural RM specialists
across the UK
Specialist RM • Mid-size firms can access
• Turnover > £2m to £100m large corporate capabilities
Corporate &
• Borrow £250k - £35m Specialist
• Cover complex events and
• Specialist skills required sectors incl. FinTech, Health
& Social Care, Renewables
27WE HAVE A CLEAR DIVISIONAL AMBITION AND STRATEGY
HELP BUSINESS OWNERS REALISE THEIR
Our ambition
POTENTIAL AND ACHIEVE THEIR DREAMS
Expand our
Our strategy relationship Expand our existing sector relationship approach:
• roll-out the proposition nationally
proposition • enhance and streamline our product suite
nationally
Launch Virgin Deploy our iconic, entrepreneurial brand:
Money for • into a receptive national marketplace
business • leverage our existing relationship and service strengths
Enhance the Use our existing technology platform to:
customer • digitise our on-boarding, self-service
experience • build a full digital relationship proposition
28EXPAND OUR RELATIONSHIP PROPOSITION NATIONALLY
Established presence, strong …with a significant national …addressable by expanding
in our heartlands… growth opportunity… our relationship proposition
68% of UK
Customer numbers: businesses are Named, remote RM for small
not in our businesses – backed by
77% Heartlands heartlands: national brand
• 37% Scotland
• 24% Yorkshire &
London,
Humber Local RM for mid / large
19%
• 11% North West Heartlands, businesses to be deployed
• 5% North East 32%
in VM sites
South
East,
15% Expanded sector RM model –
23% rest of UK Other, supported by enhanced
East
• 8% East England, South West
7% customer economics
• 4% West Mids 10% West, Mids,
• 3% London 9% 8%
• 3% South East Digital tools support RMs,
• 5% Other improving productivity and
customer focus
Number of businesses per region – taken from
Business Populations, Department for Business,
Energy and Industrial Strategy. 29LAUNCH VIRGIN MONEY FOR BUSINESS
Helping businesses scale
• Offer financial and non-financial services
• Supported by partnerships
Entrepreneurial brand Broad product range
• Nationally recognised • Wide range of products and
• Resonates with business aspirations capabilities
• Made available for ambitious
businesses at every stage of lifecycle
Increased addressable market Experience and reputation
National coverage via: • Credibility in delivery
• digital onboarding • Strong reputation across the
• RM model business market
VIRGIN MONEY FOR BUSINESS
• multi-channel servicing A new business bank with
• national physical network established trust and expertise
30ENHANCE THE CUSTOMER EXPERIENCE
Digitised on-boarding Digital self serve Enhanced relationship offering
Simple, straight-through Significantly improved
digital on-boarding transactional banking Enhanced digital Support business
capability expansion
Increased digital
Faster account opening
product capability Digital Customer Lab –
on-boarding designing future
Partnership model for
Credit decision automation Digital Digital RM
specific requirements product sales toolkit
Wide range of products to Multi-channel model – Automated Pricing insight
be digitally fulfilled here when you need us credit and economics
Customer Continued enhancement
analytics of internet banking
Raising the bar on what to Connect in innovative, simple
expect from a business bank and dependable ways
31A STRATEGY TO DELIVER OUR DIVISIONAL TARGETS…
Delighted customers Super straightforward Discipline and
Pioneering growth
and colleagues efficiency sustainability
Relationship balances Targeting • Maintain strong risk
3
(£bn) 70% of approach and underwriting
Top businesses
Linked savings
standards
1.8 using digital
BCAs
as primary • No change to sector focus
Now
6.6 channel: c.50% – expand what we do
Supported by growth
in CMA business banking today on a national basis
service quality rankings FY22
in BCA market share 70%
from c.3.5% to c.5% by FY22 • Maintain price discipline &
H1 19
straightforward product set
Supported by:
Business share of group • Focus on attracting high-
lending balances: • enhanced relationship
offering quality relationship deposits
Targeting 75% of business
accounts opened digitally:
c.15% • digitised on-boarding
c.10%
Now FY22
• digital self-service
H1 19 Medium 0% 25% 50% 75% 100%
term
32…WITH A CLEAR 3 YEAR MILESTONE PLAN
2019/20 2021 2022+
Expand
Deepen sector and
National rollout product specialisms
Launch
Virgin Money for business Rebrand of Yorkshire and
launched Clydesdale complete
Digital Business hub
Enhance
Enhanced digital
Automated credit
on-boarding experience
33PERSONAL
Fergus Murphy
34OPPORTUNITIES TO DIFFERENTIATE IN A CHANGING MARKET
Personal finance is changing rapidly… …as is the operating environment
Economy • Personal loan growth to remain
Competitive
muted given economic uncertainty
• All-time low unemployment unsecured
• Brexit uncertainty lending • Credit Card market set to plateau
markets… given greater regulatory focus
Government / Customer behaviour
regulatory • PCA switching currently relies on
• Experience economy …deposit
• Open Banking impact up-front incentives
and high expectations competition
• GDPR implications
• Subscription-driven • Customer inertia at Big 5 banks
remains
consumption increases competition for non-PCA
intense…
/ linked deposits
Digitisation Competition
…but we
• Unique opportunities to address
• Influx of challenger banks, • Influence of aggregators have
Fintechs and tech giants Consumer credit growth these dynamics with our relationship
• opportunities
• Unprecedented pace of to remain muted propositions
to mitigate
change
35WE HAVE A VERY STRONG EXISTING PLATFORM…
A deposit book with opportunities… …and established unsecured portfolios
Personal deposit mix
H1 19…AND COMBINING THE BUSINESSES OFFERS OPPORTUNITIES…
Recognised consumer champion
• Brand offers significant opportunities
• Build upon strong Net Promoter Scores (NPS)
Full digital capability Full personal finance product capability
• Leading digital platform • Current accounts, savings, credit
• Open Banking ready cards and personal loans
A national network Increased customer base
• UK-wide coverage • #6 retail bank in UK
• Branch and telephony • 6.4m customers
THE VIRGIN MONEY BRAND
Aspirational and trusted
RELATIONSHIP-BASED BANKING WILL LEVERAGE THESE STRENGTHS
37…TO BETTER ENGAGE OUR NEW CUSTOMER BASE
A more attractive customer base… …with national distribution to service them
Branches Segment
13% VM acquisition concentration
Managing Matures added c.1.6m Journey to
customers in more Affluence and
Established
affluent segments Affluent
28% UK population
distribution
Later Life Pressures
13% • 30-55 age range
21% • £90k+ household income
Established Affluent • £100k+ savings
35%
15%
Journey to Affluence
• 35-55 age range
• £50k+ household income
13%
• c.£45k savings
10%
28%
23% Clydesdale
Aspiring Value Seekers Virgin Money
Yorkshire
CYBG only Combined Group RHS chart shows distribution of UK
population in affluent segments 38WE HAVE A CLEAR DIVISIONAL AMBITION AND STRATEGY
Our ambition HELP CUSTOMERS LIVE AND BANK IN A
MORE REWARDING WAY
Transform • Compelling, rewards-led propositions
Our strategy our relationship • Leverage mutually beneficial value economics to
proposition increase low cost relationship PCAs and savings balances
Enhance • Dramatically increase digital adoption
the customer • Re-tool our physical spaces to provide expert advice
experience • Provide leading self-service capability
Deepen • Enhance our existing unsecured lending propositions
our customer • Opportunity with a significantly larger customer base
relationships under the Virgin Money brand
39TRANSFORM OUR RELATIONSHIP PROPOSITION
Non-price led, rewards-based offering… …to develop our value-based proposition
Relationship will share value with the customer:
Financial needs met Plus great rewards Compete
on value • Launch rewards based Virgin Money PCA
Transact Celebrate transition from with competitive linked savings offering
efficiently and travel
price-led • Target large pools of low-cost, inert savings
acquisition to balances held by incumbents
Pay and Connect
and enjoy
a lower cost, • Customers benefit from great tech, a great
earn
higher value account, better rates and great rewards
approach • We benefit from growth in lower cost
Invest current account and relationship deposits
and save Give
Protect Keep fit £12.0bn focus on
Linked attracting
savings 3.8 lower cost
relationship
Best in class propositions Relationship offering balances
to help meet money unique rewards and PCAs 8.2
needs and life goals personalised benefits
H1 19 40ENHANCE THE CUSTOMER EXPERIENCE
Digital self serve Expert advice Customer contact
Simple straight-through digital Empower branch staff to become Increased speed of customer
on-boarding and servicing experts in our digital propositions query resolution
Increase in-app servicing Increased ability to handle Minimise need for customers
functionality complex technical queries to leave channel of choice
Customers can easily deepen Create spaces that customers Become the private banker
relationship with us via digital want to use to work, learn & bank in our customers’ pocket
Improve customers’ ability to stay Footprint optimised to evolving Contact centre technology will
in control of their finances customer preferences meet evolving customer needs
Top-quartile digital engagement Support our customers with expert Simple and efficient day to day
and top 3 CMA customer service ranking advice when needed customer service proposition
41DEEPEN OUR CUSTOMER RELATIONSHIPS
Propositions to deepen relationships… …supported by partnership initiatives
✓
• Major investment in customer experience
Live
• Opportunities in underserved existing customer bases,
offering rewards for relationships: • Launched April 2018
• PCA offering to c.1.4m VM Credit Card customers
• Offering co-branded fee and non-fee cards
• Focuses on Flying Club experience - access to 1.2m
• Credit Cards to c.1.3m CYBG PCA customers club members, affluent high-quality customers
• Enhanced, scalable data platforms and decisioning • 120k accounts since launch, 4bn Flying Club miles
earned from retail spend over £2bn since launch
systems to better understand our customers
✓
• Cards proposition developed via Open Banking, flexible Live
borrowing, pay anyhow and cashback • Personal loan JV launched Feb 2019
• c.£50m originated since launch
• Loans offering developed through partnerships and • Innovative channel supporting existing loan business
rewards, guaranteed loans and real rates
• Partner with large employers to offer financial wellbeing
• Existing customer focus supports asset quality benefits and affordable loans to employees
• Offers above-average yields within risk appetite
42A STRATEGY TO DELIVER OUR DIVISIONAL TARGETS…
Delighted customers Super straightforward Discipline and
Pioneering growth
and colleagues efficiency sustainability
Relationship balances Increase in digital adoption: • Focus on attracting high-
3
(£bn) quality relationship
Linked savings
3.8 Top 30% deposits to support Group
• Focus on attracting
c.60-
PCAs
65% affluent new customers
8.2 48%
and deepening
Supported by growth in CMA customer service
in PCA market share rankings by FY22 relationships with existing
H1 19 FY 22 customers
H1 19 from c.2.5% to c.3.5%
Delivered by: Improve mobile app
transactional NPS: • Measured asset growth to
Unsecured share of Group • transforming the
attain our natural market
lending balances: customer proposition +49
share in unsecured
• enhancing the
customer experience • Maintain strong risk
c.10% approach and
c.6% • deepening the
underwriting standards
customer relationship
H1 19 Medium
term 43…WITH A CLEAR 3 YEAR MILESTONE PLAN
2019/20 2021 2022+
Transform
Suite of new Virgin Money Open Banking and
product launches reward experience
Enhance
Single sales and service Full digital servicing,
platform in all channels re-purposed branch network
Digital Personal hub
Deepen
VAA/Virgin and other All personal customers served
partnership extensions with single brand and CX
44MORTGAGES
Hugh Chater
45ENVIRONMENT REMAINS HIGHLY COMPETITIVE…
Societal factors are driving change… …while the market remains subdued
Economy • Low interest rates support a strong
Structural remortgage market
• Low interest rates changes are • Limited market growth / net lending
• Brexit uncertainty subduing
demand … • Falling house purchase transactions
Government / Customers from Buy to Let regulatory impact and
regulatory lower volumes of next time buyers
• Prudential oversight • Ageing population
• Government interventions • Evolving working
patterns
• Ring-fencing impacts • Ring-fencing liquidity and excess
… while
margin supply are driving margin pressure
Digitalisation Competition pressures • Increased focus on higher-yielding
• Customer expectations • Muted market growth remain segments to support margins
• New entrants • Over-supply of finance
• Low HPI
46… AND THE DIGITAL REVOLUTION IS HERE
…customers demanding a better
A market that is primed for digitisation…
experience
The home buying journey hasn’t changed ...
Online application and servicing
…but consumer
expectations have…
With multi-channel capability
…and new ventures are targeting intermediary
and consumer mortgages…
…3 sourcing systems cover the vast majority of the
intermediary market…
Real-time digital support for brokers
…c.£140m direct-to-consumer advertising spend in 2018(1)
Limited patience for delays
(1) Source: Addynamix 47OUR COMBINED MORTGAGE BUSINESS IS STRONGER…
Customer service
• Outstanding customer experience
• Outstanding broker experience
Intermediary relationships Broader proposition
• Long-standing history • Broad range of mortgage products
• Relationships with all major • Propositions for wide-range of
networks segments
Direct market coverage Experience and capability
• UK-wide coverage • Straight-through efficiency
• Branch and telephone • Complex business expertise
THE VIRGIN MONEY BRAND
Nationally recognised and trusted
48…WITH A HIGH QUALITY, BALANCED MORTGAGE PORTFOLIO
A balanced portfolio… …with low-risk loan-to-value distribution…
£60.5bn lending book BTL - C/I H1 19
80%+ 12%
OO - Capital
H1 19 3%
& interest
£45.8bn BTL - I/O 62% 60% - 80% 36%
21% 58.2%
average
76%WE HAVE A CLEAR DIVISIONAL AMBITION AND STRATEGY
Our ambition SIMPLIFY MORTGAGES TO MAKE
CONSUMERS’ LIVES BETTER
Digitise • Create market-leading, digitally-served
Our strategy the customer experiences putting the customer in control
experience • Deliver cost-to-serve efficiency
Maximise
relationships to • Make the home-owning experience
straightforward and satisfying
create brand • Develop our digital Mortgage Hub
advocates
Optimise
• Stand out as a lender with agility and speed
the franchise • Deliver differentiated personal service with the
for value efficiencies of scale
50DIGITISE THE CUSTOMER EXPERIENCE
Make life easier Make it easy Improve
for intermediaries to buy direct productivity
Digital Assistant via Excellent customer experience
Single point of data entry
The Mortgage Hub improves conversion rates
Automated Simplified application with Improved customer
affordability/eligibility multi-channel capability retention
Automated verification Faster decisions delivering Use big data and agile
and KYC certainty for customers approach to target opportunities
Timely and relevant case E-updates & digital Significant efficiencies from
updates tracking digitisation and single platform
Deliver significant efficiencies Create an exceptional Drive efficiencies and
for the franchise and brokers customer experience maintain competitiveness
51MAXIMISE RELATIONSHIPS TO CREATE BRAND ADVOCATES
A new Mortgage Hub will transform …to deepen relationships and
how we engage customers… increase product holdings
External partnerships In-house delivery
Account servicing
• Paperless and engaging
Home Property
improvements trade-up
The Mortgage Coach
Andy Cook • Assist throughout home
Online
Removals advice
19 Coppers Brook, NE00 4RA
andy.cook1981@test.com
UPDATE PROFILE
ownership journey
Alerts
Additional • Timely, relevant & save
Insurance borrowing money
Rewards
Utilities and Online
media management
V 1
• Personalised offers from
Virgin group and partners
Fully integrated with the Personal hub, putting the customer in control of their financial needs
52OPTIMISE THE FRANCHISE FOR VALUE
Straightforward brand extension Super-efficient distribution
By differentiating our service propositions,
brokers will receive the best of both franchises: Intermediaries
Introduce the Expert proposition to a wider
range of brokers:
Expert Everyday • c.4,000 new broker relationship
opportunities already identified
• Benefits of combination very clear
Expertise to assess Mainstream lending
complex situations backed by differentiated
and make the right market-leading service Direct
decisions promise 1 in 4 customers acquired through direct
channel by:
• digitising customer acquisition
Bespoke underwriting Market-leading service • continued investment in the existing
customer experience
Appropriate risk-reward Digital processing
53A STRATEGY TO DELIVER OUR DIVISIONAL TARGETS…
Delighted customers Super straightforward Discipline and
Pioneering growth
and colleagues efficiency sustainability
Maintain stock Customer transactional NPS: Reduction in processing cost • Prudent risk approach
mortgage market share: of a mortgage application: and underwriting
+67 (20)% standards
c.4% c.4%
• Ensure pricing discipline
and prioritise returns
H1 19 Medium over volume
term
Mortgage share of H1 19 FY 22 • No deterioration in risk
group lending balances: characteristics of the
• Introduce the new Increase direct applications portfolio
‘Expert’ proposition to:
Direct
to c.4,000 new 25%
c.84% c.75% brokers by FY22
H1 19 Medium Indirect
75%
term
54…WITH A CLEAR 3 YEAR MILESTONE PLAN
2019/20 2021 2022+
Digitise
API connectivity to broker Leverage group assets
sourcing systems (e.g. Auto KYC)
Maximise
Single direct platform Full digital experience
Digital Mortgage hub
Optimise
Brand extension Extend intermediary
distribution
55TRANSFORMATION
Fraser Ingram
56
56OUR TRANSFORMATION JOURNEY
Simplify • Exit NAB, deliver IRB, MBNA migration, deliver Sustain efficiency benefits
Digitise • Built B digital bank, iB platform, Open Banking ready
• Realise c.£150m synergies with a
Integrate straightforward plan
• Digitisation drives further
Transform efficiencies with an additional
c.£50m of net cost savings
Completed Next phase of our journey
57SIMPLIFIED THE BANK
A track record of delivery …to simplify our bank
✓
c.£350m three year investment programme • Build and scale iB digital platform, deliver
across 2016-19 separation and build IRB infrastructure
Separation from NAB and exit from 29
Transactional Service Agreements
• Completed on schedule, removing
significant third-party risk
✓
Delivery of the ‘Sustain’ Operational
Efficiency programme
• Delivery of >£90m of cost reductions
in 2 years
✓
✓
Range of customer journey operational
• Customer experience improvements
improvements delivered
✓
VM completion of the MBNA credit cards • Scalable, controllable and cost-efficient
portfolio migration to TSYS cards platform
✓
Completion of the multi-year IRB
accreditation programme • Significant reduction in Group RWAs
58HAVE DIGITISED TO CREATE A MODERN,
SCALABLE PLATFORM…
A simple, modern architecture… …as the bedrock for future delivery
• Digital platform (iB) built, integrated and scaled,
using private cloud, open architecture and robotics
• iB sits above core systems, hosted on internal cloud,
Real-time, multi-channel capability
Open Banking and FinTech partner ready
ALL RETAIL AND SME CUSTOMERS ON A SINGLE PLATFORM
• Big data platform (iD) supports a single customer
view with all customers on one platform
Microservices/APIs
Open
Banking
Interaction management
` • Scaled platform with c.2 million CYBG customers
live FinTech migrated on to iB with c.4 billion transactions in the
Platform Real time trusted data & insight Partners
data store
PaaS
C O R E B AN K I NG P L A T F O RM T S Y S
• Agile capability delivery
F UL L CL EA R I N G + PA Y M E N TS CA P A B IL I TI ES • First to offer account aggregation to
customers using secure open APIs
UNIQUE CAPABILITY IN UK BANK OF SCALE • First to offer mobile cheque clearing
59…ONGOING DELIVERY OF IMPROVED CUSTOMER EXPERIENCE
B Store
December
October 2018 2018
Acquisition of
Feb 2016 August 2017
New apps -
all brands, all
channels
Significant digital features delivered in a short time-frame due to our iB platform capability
January 2019
iB for Business
February 2018
Cheque imaging
June 2016 May 2018
B launch Open Banking ready
60COMBINATION CREATES A UNIQUE
DIGITALLY ENABLED COMPETITOR
All the strengths of the major Neo Bank
banks… …with the digital agility of a neobank
✓ Primary relationships ✓ Innovative brand & edge
✓ Trusted brand, ✓ Customer lifestyle
loyal customers BETTER THAN BOTH intelligence
✓ Full personal and Strengths of Strengths ✓ ‘Pay & play’
Strengths
a majorof of a functionality
business offering
thebank
major neobank
✓ Multiple distribution banks ✓ Innovative digital
channels platform
✓ Digital capability ✓ Saving pots
and Open Banking functionality
✓ Multi-product customers ✓ Limited back-end legacy systems
61INTEGRATION PLAN DELIVERS AN EFFICIENT, SIMPLER BANK…
Unchanged, clear integration plan… …delivers a streamlined operating model
1
Active banking licence
Legal entity
Brand – Virgin Money
Full service product set
Platform supporting all
customers
62…WITH CLEAR PROGRESS EVIDENT
Integration is progressing well… …with the FSMA Part VII process on track
Strategy
• Integration approach validated 1 • Regulatory application
✓
• Programme mobilised and in delivery
• Brand strategy agreed and scheduled 2
• Regulatory approval
✓
People
3
• Initial court approval
✓
• New organisational design in place
• Customer notifications
•
•
New Purpose, Values and Behaviours
Single performance framework
4
• Ongoing internal communications • Final court approval
5
Expected
Synergies • Scheme effective date
• c.£150m of integration synergies validated 6 October 2019
• Rationalisation of senior management
• Closure of VM London office in June 2019 A SINGLE AUTHORISED & REGULATED BANKING ENTITY
• On track to deliver c.£50m of run-rate
savings by end of FY19 Virgin Money re-launch and re-brand can commence
63DIGITISATION OFFERS SIGNIFICANT OPPORTUNITY TO
LEVERAGE OUR PLATFORM…
Our platform is supporting …but there is a significant opportunity
strong growth in digital usage… for us to improve
2017 – finished iB platform build • Digital will become our primary channel
2018 – first year of all personal customers on iB
Digital adoption opportunity
Mobile banking Mobile
daily logins app users 60-65%
48%
+39% +32%
growth CYBG now By end FY22
2017 - 2018 • Platform build and Project Sustain efficiencies realised
initial digitisation cost savings:
+21% +50% • >£90m cost savings achieved in 2 years
Digital Digital
sales per payments • CYBG standalone underlying C:I ratio improved
annum made from 74% at FY16 to 63% at FY18
• Significant opportunities still remain
64...CONTRIBUTING TO THE REALISATION OF ADDITIONAL
NET COST SAVINGS OF c.£50M
…will deliver incremental
Significant efficiency opportunities…
net cost savings
Digitisation • 30-35% increase in digital adoption
• Complete digitisation of service processes realises
significant physical infrastructure savings Additional net cost
• Significant reduction in paper communications by
savings of
adopting industry standard approach
Sourcing
• Move to a supplier partnering model versus in-house to
c.£50m
drive efficiencies p.a. by FY22
• Opportunities to source in a more flexible way
Change • Extend modernisation of change programmes;
adopting more lean and agile approach
• Transformation will unlock significant efficiencies – both
pace and cost
65TRANSFORMATION ENABLES OUR DIVISIONAL STRATEGIES
• Digitisation of customer on-boarding Pioneering
• Credit decision automation growth
Business • National coverage model under new brand
• Digital Business hub
Delighted
• Virgin Money branded PCA and relationship proposition customers and
colleagues
• Enhanced digital borrowing propositions, leveraging iD
Personal • Full digital servicing and online self-service
• Digital Personal hub Super
straightforward
• API connectivity to major broker sourcing systems efficiency
• Full automation of application process
Mortgages • Full digital customer experience
Discipline and
• Digital Mortgages Hub sustainability
66FINANCIALS
Ian Smith
67
67A STRATEGY TO DELIVER OUR FINANCIAL TARGETS
A clear strategy… …to deliver our key financial targets
Reshape balance sheet mix: • 75% mortgages Ambition for
Pioneering • 15% business asset mix in
• grow margin accretive assets
growth • 10% unsecured medium term
• grow low cost relationship deposits
• Above system asset growth
Delighted • Enhance the customer experience
• High single digit CAGR growth in current
customers and • Drive digital adoption
account and savings balances
colleagues • Colleagues delivering our purpose
•BUILDING ON OUR TRACK RECORD OF DELIVERY
5% Culminating in the
CAGR
Virgin Money transaction…
Customer lending £bn
33.3
growth 28.8
(2)
IPO FY18
75%
63%
Cost £m
efficiency(1) 727 (92)
635
(13)%
(2)
IPO FY18 …and a strong start in our first 6
months as a combined group
Capital • Resilient underlying performance
IRB accreditation received for mortgage
• Underlying cost:income ratio of 57%
optimisation and SME portfolios in October 2018
• CET1 ratio of 14.5%
• Underlying RoTE of 10.4%
(1) Underlying costs and cost:income ratio (2) IPO figures as at 30 September 2015
69RESHAPING THE MIX OF OUR ASSET PORTFOLIOS…
Rebalancing our current balance sheet… …to optimise margins
Customer lending mix
£72.7bn
Unsecured
£4.5bn c.6% c.10% Unsecured
Grow above
Business c.10% the market
£7.6bn
c.15% Business
Mortgages
£60.5bn c.84% Maintain
market share c.75% Mortgages
H1 19 Medium-term
ambition 70…AND GROWING LOWER COST RELATIONSHIP DEPOSITS…
Rebalancing our current funding mix… …will improve our customer cost of funding
Deposit mix
H1 19
• Launch of Virgin branded
c.33% PCA to attract new current
PCA Linked relationship account customers
Savings
Retail Variable 6% deposits • Relationship propositions to
PCA
Savings
29% 13% attract linked savings
balances
BCA
£61.7bn 11% • Business banking strategy
BCA Linked to grow BCA and
Savings relationship deposits
3%
SME • Price-led deposit balances
Retail TDs
35%
Deposits managed down
3%
• Loan-to-deposit ratio…WHILE ABSORBING WHOLESALE FUNDING COST PRESSURES
Clear path to TFS refinancing… …while absorbing MREL cost pressures
TFS contractual repayment profile
(£bn) 25.3% 2022
HoldCo Final MREL
Senior £0.8bn
0.4
repaid
4.7
Total 2020
8.6 0.75% Capital £5.2bn Interim MREL
21.50%(1)
Current cost
3.5
Drawn FY19 FY20 FY21 FY22 H1 19 MREL Ratio MREL Requirements
• TFS refinancing to continue in advance of contractual • H1 19 MREL ratio of 25.3% - comfortably ahead of 2020
maturity (£0.4bn repaid to date), broadly evenly split: interim MREL requirement
• Growth in lower cost relationship deposits • Final MREL dictated by Dec-21 Pillar 2A
• Secured funding • Planned issuance of £2.0-£2.5bn by Dec-21(2)
• HoldCo senior issuance to meet MREL • Current cost of c.4%
(1) Includes Fully Loaded Capital Conservation Buffer of 2.5% and expected ‘standard risk environment’ Countercyclical Buffer of 1% (2) Includes expected Pillar 2A evolution, RWA inflation and Management Buffer 72MIX RESHAPING SUPPORTS A MODEST NIM IMPROVEMENT
NIM evolution – drivers Note: we only assume one
(not to scale) base rate rise out to FY22
165-170
bps
5-8
bps
FY19 TFS and wholesale Mortgage Asset Deposit FY22
refinancing impact margin mix mix
impact
73BUSINESS AND PERSONAL SUPPORT NON-INTEREST INCOME GROWTH
Structural changes to non-interest income
…as we maximise our opportunities
in 2020 give way to growth…
Non-interest income
Not to scale
• Structural changes in FY20 include:
Commissions
• Aberdeen Standard Investments (ASI) JV
accounting impact - reduces from a gross fee
Impact of ASI
JV accounting
income of c.£25m to 50% share of JV profit
Business
(from fee
income to net
• High Cost of Credit review expected to reduce
50% share of JV overdraft fees by c.£10m
profit)
c.£25m
• Non-interest income growth expected FY21 onwards:
Overdraft fee • Growth in Business fee income as we expand our
changes will relationship proposition
Personal
impact by
c.£10m • Growth in Retail fee income as we attract more
customers through enhanced propositions
FY19 FY20
74c.£50M OF ADDITIONAL NET COST SAVINGS IDENTIFIED…
Significant new cost savings identified… …with a modest incremental cost to achieve
Evolution of cost savings target
(£m)
• Our transformation programme delivers an additional
c.£50m of annual cost savings by the end of FY22
c.50
Avoidance
of VMDB • This will be delivered for a further c.£60m of
running c.35 30 restructuring costs on top of the previously
costs announced c.£300m associated with the integration
c.200
synergies
120
• Restructuring cost phasing is expected as follows:…SUPPORTING A
NO CHANGE TO RISK APPROACH: COST OF RISK TO REMAIN
c.13% CET1 OPERATING LEVEL TO UNDERPIN THE GROUP
Strongly capitalised today and… …a target CET1 operating level of c.13%
14.5%
c.13%
11.6% 1-1.5% • PRA review of the Group’s ICAAP is well advanced
management
CCyB 1.0% buffer
• Group will seek to operate with a prudent 1-1.5%
CCB 2.5%
management buffer above regulatory minimum
capital requirement
Pillar 2A 3.6%
• Strategic plan outcomes geared to a c.13% CET1
4.5%
operating level over time
Pillar 1
CRD IV minimum Mar-19 CET1 operating
CET1 capital CET1 ratio level
requirement
78>100 bps EXCESS CAPITAL GENERATION ONCE
RESTRUCTURING IS COMPLETE
Capital generation supports glide path to …as we transition to a highly-capital
target CET1 operating level… generative business model from FY22
CET1 capital utilisation
(not to scale)
• Material restructuring costs in FY19-21
Restructuring costs • RWA growth from new lending and asset mix,
although expect substantial RWA efficiencies
Underlying
capital Net RWA growth
generation AT1, acquisition
• Group will take part in the Bank of England stress test
accounting and other regime from 2020
Ordinary dividend
capacity CET1 after • Group expects sufficient capital capacity to deliver
foreseeable progressive, sustainable ordinary dividends with a
demand
c.50% payout ratio expected over time
Target
H1 2019 14.5% operating c.13% • From FY22 the Group expects to generate >100bps of
level
excess CET1 capital per annum for distribution or
growth
Sources of CET1 Utilisation of CET1
79IMPROVING PROFITABILITY SUPPORTS SHAREHOLDER RETURNS
Improving profitability and RoTE… …supports strong shareholder returns
>12% statutory
10.4% RoTE by FY22
underlying
• Statutory RoTE target of >12% by 2022
RoTE
100% • Statutory RoTE to converge with underlying RoTE
over time as restructuring costs diminish
Profit • Strong capital generation will create significant
Before capacity for distributions
Tax
• Committed to delivering progressive, sustainable
ordinary dividends with a target for a c.50% payout
0% ratio over time
H1 19 FY19 FY20 FY21 FY22
Statutory Underlying
80A STRATEGY TO CREATE SIGNIFICANT SHAREHOLDER VALUE
…drive our key …delivering strong returns
Our strategic priorities…
financial targets… and business momentum
Reshape balance sheet mix: • 75% mortgages Ambition for
Pioneering
• grow margin accretive assets • 15% business asset mix in
>12%
growth medium term
• grow low cost relationship deposits • 10% unsecured
Statutory RoTE by FY22
• Enhance the customer experience • Above system asset growth
Delighted
• High single digit CAGR in
customers and • Encourage digital adoption
relationship deposits
colleagues • Colleagues delivering our purpose • 100bps
• Realise integration synergies Significant efficiencies by FY22: CET1 generation
Super
• c.£200m net cost savings p.a. by FY22
straightforward • Digitise and simplify the business
•STRATEGIC
AMBITION
David Duffy
82COMBINATION CREATES A UNIQUE DIGITALLY
ENABLED COMPETITOR…
All the strengths of the major Neo Bank
banks… …with the digital agility of a neobank
✓ Primary relationships ✓ Innovative brand & edge
✓ Trusted brand, ✓ Customer lifestyle
loyal customers BETTER THAN BOTH intelligence
✓ Full personal and Strengths of Strengths ✓ ‘Pay & play’
Strengths
a majorof of a functionality
business offering
thebank
major neobank
✓ Multiple distribution banks ✓ Innovative digital
channels platform
✓ Digital capability ✓ Saving pots
and Open Banking functionality
✓ Multi-product customers ✓ Limited back-end legacy systems
83…WITH A CLEAR PATH TO SUCCESS…
Launch of revitalised brand;
change Top Co name to
2019 Virgin Money UK PLC
Business Personal Mortgages
Launch of Virgin Launch of the Virgin Money Open API connections to
Money for business personal current account major broker sourcing systems
Early 2020 late 2019 2020
All customers served with Full digital experience &
Extension and
brand extension
2021 automation 2021 single brand & experience 2021
Inter-connected digital Top 3 in CMA customer service rankings
lifestyle hubs:
• Business Substantial increases in PCA / BCA market share
• Personal
• Mortgages Lending and deposit growth above market
2022+
84…CREATING FUTURE OPTIONALITY
Real-time data Open Banking
and insights live, cloud
hosted platform
Winners:
Consumer Small new Tech & data Regulatory Lead on technology
to deliver superior
change entrants acceleration change INFLECTION POINT
customer outcomes,
Fintech flexible, adaptive and
forward thinking
Neobanks BIG PSD2,
Open
DATA banking
Losers:
Behind the curve
on technology
New business development
Payments Banking
models and/or fail to adapt
Big Tech entrants
Telecomms
85APPENDIX
86LEADERSHIP TEAM BIOGRAPHIES
David Duffy Ian Smith Helen Page
Chief Executive Officer Chief Financial Officer Group Marketing and Brand Director
Skills and experience Skills and experience Skills and experience
David has significant international finance and Ian has considerable experience in finance, Helen joined CYBG in December 2012 with the
banking experience gained from a career audit and advising on bank strategy and specific remit to reinvigorate and relaunch the
spanning almost three decades. corporate transactions from a career spanning Clydesdale and Yorkshire Bank brands.
more than 30 years. He has held senior finance Following the successful acquisition of Virgin
David joined CYBG in June 2015. Prior to joining roles in HBOS plc and Lloyds Banking Group Money in 2018, Helen has now assumed Brand,
the Group, David was Chief Executive Officer plc. He joined the Group in November 2014 Marketing and Customer Experience
at Allied Irish Banks plc, one of the largest retail from Deloitte LLP where he was a partner responsibilities for all brands.
and commercial banks in Ireland. He is a specialising in financial services.
former Chief Executive Officer of Standard Helen has over 25 years’ experience in
Bank International where he had responsibility marketing, consultancy and product
for operations in the UK, Europe, Latin America development, including 15 years in financial
and Asia. He was also previously Head of services. Prior to joining CYBG, Helen spent eight
Global Wholesale Banking Network with ING years at RBS as Managing Director for
Group and President and Chief Executive Marketing and Innovation and held
Officer of the ING wholesale franchises in the responsibility for all UK brands across the Retail,
United States and Latin America. Commercial and Corporate divisions.
David is a past President of the Banking and Helen was also Head of Brand Marketing at
Payments Federation of Ireland and a past Argos, where she relaunched the catalogue as
Director of the European Banking Federation. a retailer. Prior to Argos, Helen held a number of
product and marketing roles at Abbey, where
she became Head of Marketing.
87LEADERSHIP TEAM BIOGRAPHIES
Gavin Opperman Fergus Murphy Hugh Chater Fraser Ingram
Group Business Banking Director Group Retail Director Group Mortgages Director Group Chief Operating Officer
Skills and experience Skills and experience Skills and experience Skills and experience
Gavin joined the Group in Fergus joined the Group as Products Hugh has over 25 years of Fraser Ingram was appointed Chief
November 2015. He has been in Director in January 2016. He has experience in financial services. He Operating Officer in June 2019.
banking for over 30 years with over 20 years’ experience in was an executive founder at MBNA He was previously the Chief
experience in leading large-scale financial services. Europe, joining in 1993 from KPMG Information Officer (CIO) of CYBG.
teams in Retail (incl. Digital), Management Consulting.
Commercial, Corporate and Prior to joining the Group, Fergus Prior to this, his most recent roles
Investment Banking. held a number of key roles at Allied At MBNA Hugh held executive roles include Chief Operating Officer of
Irish Banks from 2011 until 2015 in HR, Credit Management, Kleinwort Benson in London and CIO
Gavin was previously Regional including Director of Products and Customer Satisfaction and of Citizens Bank.
Head of Consumer Banking (Hong Capital Markets and, most recently, Marketing before becoming Chief
Kong, Taiwan and China), Standard Director of Corporate, Institutional Operating Officer and then UK Fraser has a wide range of
Chartered based in China. Prior to and Markets. From 2008 until 2011 Managing Director. In 2007 Hugh experience across businesses,
this he spent almost 20 years with he served as CEO and joined RBS Retail to run the functions and geographies -
the Barclays / Absa Group, where Managing Director of BES Building consumer credit card business. He including business transformation, IT,
he progressed through a number of Society and EBS Limited. subsequently ran the current and change management.
senior roles before being appointed account, savings, investments and
as Managing Director of Absa (Asia) Fergus also held a number of senior insurance products. Hugh joined A Fellow of the Chartered Institute
Ltd and later Chief Executive of positions at Rabobank International Virgin Money in June 2016 with of Bankers, Fraser also gained an
Absa’s Retail Bank. between 1994 and 2007. He served responsibility for commercial MBA from Aston Business School. In
as CEO Asia Region from 2003 and performance, customer outcomes addition, he is a founding trustee of
was previously a member of their and optimising distribution and CUDECA, the first independent
Global Financial Markets servicing channels. hospice in Spain, which he has
management team, holding roles supported since 1992.
as Global Treasurer and Head of
Global Investment Banks.
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