CYBG posts first net annual profit since IPO

CYBG posted its first net annual profit for more than five years as the owner of Clydesdale and Yorkshire banks cut costs and increased lending.

Underlying pre-tax profit for the year to the end of September rose by a third to £293m. The bank swung to a net profit of £182m from a loss of £164m a year earlier and announced an inaugural final dividend of 1p a share.

Operating costs fell 7% to £675m as personnel spending fell £32m as employee numbers dropped to 6,040 from 6,718. Income rose 3% to £1bn as customer loans increased by £1.8bn to £32bn.

CYBG listed on the UK stock market in 2016 after its former owner, National Australia Bank, decided to quit the UK after almost 30 years. The company is one of several smaller banks trying to shake up the sector by investing in digital banking.

David Duffy, CYBG's chief executive, said the digital brand, B, had attracted more than 100,000 new customers since its launch in April 2016.

Duffy said: "These results show how we're building the UK's leading digitally enabled challenger bank, offering stress-free banking to millions of personal and small business customers, and sustainable returns for our shareholders."