CYBG officially confirms it’s not trying to buy Williams & Glyn, after the Treasury says RBS no longer has to sell the challenger
Clydesdale & Yorkshire Banking Group (CYBG) officially announced late last night it was no longer looking to buy Williams & Glyn from Royal Bank of Scotland.
A statement from the challenger bank said it had "withdrawn its preliminary non-binding proposal for, and ceased discussions relating to, the Williams & Glyn operations".
Shares in CYBG are trading up 1.8 per cent at 274p at time of writing.
Read more: Analysts banking on Lloyds and Barclays to have steamed ahead during 2016
However, some might be questioning whether the decision was really theirs to make – RBS confirmed earlier in the day it was no longer required to sell the division and its 300-plus branch network, after the Treasury stepped in to alter its state aid obligations.
RBS had been required to ditch its interest in Williams & Glyn by the end of this year as part of its £45bn state bailout deal. However, the bank revealed last October it would not be able to do so.
Read more: Banks fear rising risk costs are just around the corner
Now, instead of selling Williams & Glyn, the Treasury has asked the lender to contribute £750m to a fund designed to boost competition in small business banking.
RBS is due to report its full-year results on Friday. It is expected to reveal it has made a loss for the ninth year in a row.