Glasgow-based banking group CYBG confirmed on Wednesday it will retire its 175-year-old Clydesdale and Yorkshire Bank brands and rename itself Virgin Money UK by the end of this year.

CYBG bought Virgin Money last year.

The group said the CYBG plc name will change to Virgin Money UK plc in late 2019 – with the group’s entire business using the Virgin Money brand by end of 2021.

It is thought that Clydesdale Bank notes will continue to be issued.

CYBG CEO David Duffy said: “The decision to retire brand names with such long and proud histories is not an easy one.

“Marrying the values and expertise of these heritage brands with the Virgin Money brand will allow us to realise efficiencies and grow our business throughout the UK …

“Clydesdale and Yorkshire Bank have been serving customers in Scotland and the North of England for over 175 years.

“Both brands are a by-word for reliability and trust and we understand the emotional attachment customers and local communities have towards them …”

CYBG shares rose almost 5% on Wednesday as it set out its refreshed medium-term strategy at its Capital Markets Day.

CYBG told investors it is set to make an additional £50 million in annual savings from the Virgin Money deal, taking the total saved by 2022 to £200 million.

CYBG added: “Yorkshire Bank will begin rebrand changes in late 2019 and Clydesdale Bank will begin in the second half of 2020.

“All Clydesdale and Yorkshire Bank rebranding is expected to be complete by the end of 2021.”