Ann: CYBG PLC Third Quarter 2019 Trading Update, page-150

@Transversal, thanks for clarifying this. Admittedly, I've struggled to reconcile this reported underlying post-tax RoTE figure of 10.4% to any earnings figures disclosed in the accounts?

<sub>286m*2/(5,358m-495m)*(1-422m/(5,358m-495m)) = 10.7%

That happens to be very close to the reported Underlying RoTE of 10.4% because the effective tax rate for the semester was very low, but it is not going to remain that low once all the integration costs (and other one-off items) are out of the way.</sub>

Am I correctly summarising the above logic (in my own words, for understanding) as follows:

1) Implied pre-tax underlying RoTE = 10.7% annualised
2) Reported post-tax underlying RoTE = 10.4% annualised
3) We could deduce that the effective tax rate used to calculate the the reported RoTE is only ~ 3% (being $286 * 3% ~ $9m. NPAT therefore = $555 annualised ~ 10.4% post tax RoTE).

In any event, the statutory RoTE is aimed at >12% from FY22, and based on my observation of management's performance to date (on items within their control), I rate this as a reasonable target to model for the longer term return on our tangible equity

Cap markets day presented in June-19