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Non-executives join the board

CYBG ‘making progress cutting costs’

David DuffyClydesdale and Yorkshire Bank group (CYBG) is benefiting from a drive on costs, says chief executive David Duffy.

In the first results since its demerger from National Australia Bank and flotation in February, the group reported sharply lower costs than earlier guidance.

It said underlying profit after tax was equal to £63m (31 March 2015: £91m and 30 September 2015: £121m).

The cost-to-income ratio rose slightly to 72% from 71% a year earlier.

The company completed its leadership team complete with recruitment of Mark Thundercliffe as Chief Risk Officer, while the board was strengthened with Clive Adamson and Paul Coby appointed as independent non-executive directors.

Mr Duffy said: “I am very pleased to report good progress on all fronts in our first set of results as we execute our strategy as an independent company.

“We have a strong momentum in our business, continuing to grow ahead of the market in mortgages and over £1 billion of SME loans and facilities were made available in the first half.

“We have also seen encouraging growth in current accounts, with a number of our new products leading the field and making it quicker, simpler and more convenient for customers to access our services.

“Online account opening can now be completed in under 15 minutes, and we were excited to launch our B digital proposition, including current account, savings account and debit card to help customers with budgeting, saving and tracking how they spend their money. In the coming months we will add further functionality including “financial projections” and mortgages.

“We are also progressing with our plans to become a more efficient, responsive and productive business, and now expect our costs for the year to be £730million, materially below our previous guidance as we begin to see the benefits of actions we have taken to lower the cost base and standalone and separation costs which were lower than expected.

“Across CYBG we are focusing on the future now with confidence. Delivering great service to our customers is at the heart of our bank and over the next six months I am confident we will show continued progress against our targets and delivery of commitments for our customers, our people and our shareholders.

Chairman Jim Pettigrew, added: “I’m delighted to deliver our first set of results as an independent company after our demerger and IPO in February this year and I would like to thank everyone at CYBG for their hard work in delivering a successful outcome.

“We have a strong international shareholder base who have shown great support for our business, a high calibre leadership team which is now complete and we have refreshed and strengthened the board with new non-executive director appointments.

“We’re focussed on building a high performing, customer centric organisation with strong productivity and efficiency. Becoming an independent PLC has been a catalyst for our ongoing cultural transformation.

“In the first half we have demonstrated good progress in delivering on our strategy. Going forward we believe sustainable growth, lower costs and capital efficiency will drive improved performance and enhanced returns for shareholders.”

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