CYBG posts higher first quarter lending

Glasgow-headquartered lender CYBG Plc. has posted higher first quarter lending

Lender CYBG Plc., which made its debut in London after it spun off from National Australian Bank has posted higher first quarter lending. However, it said that growth in the market will ease and it expects to see mortgage price stability through the remainder of the financial year 2018. The Glasgow-headquartered bank said that it continues to expect mid-single digit growth in balances for the year.

CYBG, which runs the Clydesdale and Yorkshire banks, is one of the banks which emerged during the financial crisis as big banks were facing problems in lending and small businesses needed capital and filled the gap in lending to small businesses. CYBG said that new lending to small and medium-sized businesses (SME) rose 1.4 per cent to £567m in the three months ended December 31.

Mortgages increased 7.4 per cent to £23.9bn from a year earlier.

At present, rising consumer price inflation and slow wage growth has brought both home-buyers and shoppers under pressure from a squeeze on real take-home pay.

The bank said that despite the ongoing uncertainty in relation to the terms of the UK’s withdrawal from the European Union and its potential impact on the outlook for the UK economy, it remains confident in its ability to deliver the group’s FY18 and medium-term guidance.

The bank reported quarterly net interest margin of 216 basis points, down from 221 basis points in the fourth quarter. It said that its CET1 ratio was 12.4 per cent at December 31, “comfortably” within its operating range.

Customer deposit balances rose 14.8 per cent to £28.7bn.

Chief Executive Officer of CYBG PLC, David Duffy said that CYBG has delivered another solid quarter of growth, despite a competitive operating environment, seeing continued momentum in both mortgage and SME lending. While the economic outlook remains uncertain, the bank remains focused on delivering sustainable and prudent growth and is confident that it will deliver its guidance for 2018 and the medium term.

He added that CYBG also continues to take major strides in transforming CYBG into the UK’s leading digitally-enabled challenger bank, positioning strongly for the future banking landscape. He added that its iB technology platform is ready for Open Banking with full ‘plug and play’ fintech capability, meaning the bank can offer real-time, integrated services for its 2.8 million customers. Under Open Banking, customers can allow businesses other than their bank to access their financial data. This helps customers get better deals, products and services.