The Clydesdale and Yorkshire Bank (CYBG) has announced plans to reduce costs by £100m over the next three years, mainly through closure of branches.

A total of 50 branches are expected to be shut down as part of this plan, shrinking the bank’s branch network from 248 to less than 200.

CYBG CEO David Duffy said: “We have refreshed our strategic plan, taking into account revised expectations for the UK economy. Our strategy is unchanged. We will continue to support our customers, invest in our business, and remain focused on delivering enhanced returns for shareholders.

“We firmly believe that our size and scale, strong funding base and balance of assets across retail and business lending give us a solid foundation – enabling us to simplify and grow our business, reduce costs and increase capital efficiency, notwithstanding more complex market conditions.

At the same time, the bank is also planning to invest over £350m to facilitate its digital services over the next two years.

“We will invest more than £350 million over the next 2 years to simplify our business, drive cost and capital efficiency, maintain our platform's resilience and support the continued roll out of our omni-channel model. Delivering our strategy will provide an improved branch experience, supported by a strong digital offering, reflecting the new face of banking and putting customers at the heart of what we do," Duffy added.

In addition, the banking group also plans to deliver a mid-single digit annual loan growth by 2019, and a cost-to-income ratio of 55-58% that is down from its earlier target of less than 60% by the end of 2020.