Shares in Clydesdale Bank and Virgin Money owner CYBG slid 17% after it announced a loss after tax of £145 million as a result of legacy mis-selling issues.
The Glasgow-based bank said it had taken a £352m hit for PPI payments and a further £44m for other legacy conduct issues.
Underlying profit before tax is up 13% year-on-year to £331m. The bank, which completed its merger last month, is recommending an increased final dividend of 3.1p per share.
Shares fell by 16.9% to end the day at 206.4p.
David Duffy, chief executive, said: “While the additional PPI provision charge required in 2018 is disappointing, the group’s strong capital position means we have been able to absorb this without any impact on our strategy and future ambitions.”