Ann: Preliminary Announcement of Annual Results 2018, page-30

Sorry. You are absolutely right re: 14% being the proforma CYB+VM. This was mentioned repeatedly in the FY18 results transcript (accessible on CYBG’s website) Not sure why I had thought 16%.

The additional IRB accreditation CYB recently received from the PRA on its mortgage and SME book reduced risk weighted assets (RWA) by £5bn. This boosted the CET1 ratio substantially (tier 1 equity / RWA being the calculation)

Looking at CET1 ratios globally, European and UK banks are among the highest capitalised at ~14% average compared to say NAB at the low 10% and US banks substantially below 10%.
RBS as an extreme example is currently at 18.8% and has promised its shareholders either a buyback or special dividend (or both) to reduce its surplus capital.

With the low complexity loan assets held by CYB/VM (minimal derivatives or cross border loans etc), I’m increasingly confident that the balance sheet is adequately capitalised.

Kudos to you for selling when you did.
In term of the opportunity right now, I’d be quite comfortable to put a sizeable portion (~20%) of my capital in CYB at these prices.
It seems a heads I win big, tails I won’t lose too much type of situation (unless the UK goes into a 5-year recession)