Yorkshire Bank parent in positive mood as loans to SMEs are on the increase

THE PARENT company of Yorkshire Bank said it delivered a “positive” third quarter as loans and facilities to SMEs rose 4 per cent.

Clydesdale and Yorkshire Bank Group (CYBG) said it was business as usual with £1.5bn new SME loans and facilities in the nine months to June 30, up 4 per cent on the prior period.

CYBG’s mortgage book stood at £21.7bn on June 30, representing annualised growth of 8 per cent.

David Duffy, chief executive of CYBG, said: “We are making good progress in executing our strategy.

“We continue to support our customers through the current period of uncertainty following the EU referendum result. We made £1.5bn available to small and medium-sized businesses in the first nine months of the year, growth of 4 per cent on the same period last year.

“As expected growth in mortgages returned to target levels after the surge in buy to let in the second quarter, with the majority of new business in owner occupied.”

The bank launched a new digital banking platform called B, earlier this year. Initial account openings are ahead of management expectations, the bank said, with a higher proportion of customers from younger and more affluent segments compared to the existing current account portfolio. Mr Duffy said: “B is already broadening our customer demographic and reach outside of our core regions and is now an integral part of our omni-channel strategy. We remain focused on delivering returns for shareholders through sustainable growth, lower costs and capital efficiency while adapting to the new economic environment.”

The lender, which spun off from former owner National Australia Bank (NAB) in February, has been hit by the payment protection insurance (PPI) misselling scandal.

Recently it set aside £450m for PPI charges as CYBG expects a rush of claims ahead of the deadline for complaints in 2018.