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Markets plummet on fresh worries

Clydesdale note 2Mon close: Shares in London took another battering with the FTSE 100 plummeting by 158.7 points to 5,689.36 at the close as global weakness once again spooked traders.

Only seven stocks were in positive territory and the blue chip index is now at its lowest since since December 2012, as fresh data showed that confidence among UK business had fallen to a three-year low.

CYBG (Clydesdale and Yorkshire banks) today began trading unconditionally – available to all investors – and after an initial fall they recovered to trade slightly up, but were trading lower along with the rest of the market at 4pm.

The price rose to a healthy premium over the week, floating at 180p on Wednesday and closing on Friday at 207p. The shares closed 2% down at 203p.

Today marks the group’s official initiation as an independent company.

David Duffy, Chief Executive Officer, commented: “Today, CYBG has become a fully independent banking group for the first time since 1920 and it is a privilege for me to be leading the business at this pivotal moment in its 177 year history. 

“We are the only UK banking group to have a dual listing in London and Australia and we have an enviably strong and supportive shareholder register which includes blue chip institutions and individual investors across Australia, the US and here in the UK.

“With the demerger and IPO successfully completed, I am confident that CYBG starts life as a listed company in great shape.  Our large and loyal customer base and highly experienced team provide a strong platform from which to grow and we will present a very real challenge to our competitors here in the UK. 

“Now everyone at CYBG – our board, the Leadership Team and every one of our employees – will focus sharply on creating an even better bank for our customers and our new shareholders.” 

Jim Pettigrew, chairman, added: “Beginning life today as a newly independent listed company for the first time in almost a century and with a new shareholder base that truly does span the globe, we are uniquely positioned as the largest of all the UK challenger banks. With a clear customer-focused strategy being driven by one of the best management teams in banking, I am confident that CYBG has a strong and exciting future ahead.”

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