CYBG on track despite troubled backdrop
Clydesdale Bank owner CYBG said it remains on track to meet its full-year guidance despite a dip in mortgage lending in the period.
The Glasgow-based group said trading in the nine months to 30 June was in line with its expectations as it faced down the “twin pressures” of heightened competition in the mortgage market and Brexit.
It recorded a 0.2 per cent reduction in its mortgage book to £60.4 billion in the three months to June, pointing to higher redemptions and lower new business volumes.
The lender cited a “subdued” market regarding business lending growth of 0.5 per cent to £7.7bn, but heralded a strong pipeline for the fourth quarter.
Personal lending was up by 5.7 per cent to £4.8bn at the end of the quarter.
Customer deposits grew by 1.8 per cent to £62.8bn, while customer lending crept 0.2 per cent higher to £72.8bn.
The group estimated it had delivered around £45 million of annual cost synergies as it continues to integrate Virgin Money, and amid a target of £200m in savings by the end of its 2022 financial year. CYBG said last month that it is calling time on the centuries-old Clydesdale Bank brand and will transition to the Virgin name, following its £1.7bn takeover of Virgin Money last October.
Chief executive David Duffy said: “The group continues to deliver on its targets with another quarter of resilient performance including disciplined lending and deposit growth in line with our recently announced strategy.”