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CYBG announces plans for new Glasgow head office

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CYBG announces plans for new Glasgow head office

CYBG, owner of Clydesdale Bank, has announced its plans for a new head office, based in Glasgow, after signing a lease on office space to be built on Bothwell Street.

The flit was revealed as CYBG also disclosed that it had sustained a loss after tax of £76m in the first half of 2018 compared to the £30m profit it booked in the same period last year.

The group said the reversal could mainly be attributed to legacy conduct costs of £220m, a sharp rise from the £19m seen last year, and mainly due to PPI.

Last month the group warned it was upping its provision PPI compensation costs by £350m.

Today’s announcements also come just a week after CYBG made a preliminary offer for rival Virgin Money.

CYBG, which employs 3,000 people in Scotland, said the move to Bothwell Street demonstrates the Bank’s long-term commitment to the city and supports its view that Glasgow is a key location for the financial services industry.

 

Currently, CYBG employees are located across three different sites – including in its current head office in St Vincent Place, in the Guildhall in Queen Street and Granite House in Stockwell Street – as well as a number of smaller sites in other premises in the city.

With leases due to expire in the next few years, it presented the business with an opportunity to review the property portfolio and consider a new approach. Moving to a single, city centre location will improve the working environment for employees, but also enable colleagues to work closer together and enhance the service the Bank can provide to customers.

David Duffy, CEO of CYBG, said: “Glasgow is the historical home of Clydesdale Bank, which is why I am delighted to announce our plans to continue to operate in the city for many years to come.

“Glasgow has a vibrant business community and a thriving financial services community, which we enjoy playing an active part in and there is no question about the benefits having all our city centre employees in one central location, in the heart of the financial district.

“The wealth of talent in this part of the country is exceptional, with highly regarded education and training institutions on our doorstep - the new office will improve our operating environment, helping to retain and attract talent. We are also embracing technology and innovation and this has allowed us to evolve the way we work across all parts of our business. Our physical environment is an important element of that and this has been an opportunity to review our office space and consider if there are ways we can work better. Our new Head Office will offer more flexibility and value for money, while also ensuring our organisation is fit for purpose, both now and in the future.”

The building will be fitted to a bespoke CYBG layout and employees will be involved in the design and specification to ensure it meets the needs of the business.

Mr Duffy added: “We have quite a few details to work out over the next few years, but we wanted to let our colleagues, customers and the city know about our future plans. It’s an exciting development for CYBG; we became an independent Bank again just over two years ago and we are encouraged that the business continues to go from strength to strength. This announcement reaffirms our commitment to Glasgow and to Scotland.”

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