CYBG on track after solid first quarter

CYBG said it was on track to meet forecasts for annual profit after the bank traded in line with expectations in the first quarter of its financial year.

The lender, which trades under the Clydesdale and Yorkshire bank brands, said it had solid growth in the three months to the end of December.

Mortgage lending rose at an annualised rate of 7.4% to £23.9bn and loans to small businesses grew 1.4% with £567m of new lending in the quarter.

David Duffy, CYBG's chief executive, said despite continuing uncertainty about Brexit and its impact on the economy the bank is confident about its potential. The FTSE 250 bank has cut costs and increased lending since floating on the stock market in 2016 after former owner National Australia Bank decided to quit the UK.

Duffy said: "We have 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 we remain focused on delivering sustainable and prudent growth and are confident we will deliver our guidance for 2018 and the medium term."

Analysts' average forecast is for pre-tax profit to dip to £249m in the year to 30 September 2018 from £268m in 2017 due to higher exceptional charges.