CYBG on track to meet full-year targets

NAB’s British spin-off CYBG is on course to deliver on 2017 financial targets after meeting first quarter expectations.

CYBG operates Britain’s Clydesdale and Yorkshire banks. Pic: Bloomberg

CYBG, the British bank spun off early last year by National Australia Bank, says it is on track to deliver on its financial targets for the 2017 financial year after meeting expectations in the first quarter.

CYBG (CYB), which operates Clydesdale and Yorkshire Bank, said it continues to expect its net interest margin will be broadly flat in fiscal 2017, it will see mid-single-digit loan growth and a Common Equity Tier 1 capital ratio of between 12 per cent and 13 per cent.

In the three months through to December, the bank said its mortgage book increased to £22.1 billion ($36.5 billion), an annualised growth rate of 4.4 per cent that was ahead of the broader market.

Deposit balances were up 4.7 per cent, annualised, since September 30, driven by a strong performance in current account and savings balances, it said.

CYBG said it also maintained momentum in new small- and medium-enterprise lending, with £574 million in new loans and facilities over the quarter.

The bank, which is listed in London and Australia, will hold its annual general meeting in Melbourne today.

Dow Jones Newswires