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Bank trading 'in line'

CYBG ‘on track to hit targets’ says Duffy

David DuffyCYBG, holding company for the Clydesdale and Yorkshire banks, said trading is in line with expectations, with continued delivery of our strategic objectives.

Delivering figures for third quarter to the end of December, David Duffy, chief executive, said the bank was “on track to achieve our financial targets as planned”.

He added: “Despite a competitive market, we continue to grow assets prudently while focusing on sustainable margins and portfolio management.

“Whilst there is some uncertainty created by Brexit, economic indicators in the UK have proved resilient since the referendum vote. To date we have not seen any negative impact on asset quality, but we continue to monitor market conditions closely.

“Our cost delivery remains on track as we implement structural change as part of our transformation programme and associated headcount reductions, in line with expectations.

“We remain focused on executing our strategy to deliver improved returns for shareholders through sustainable growth, efficiency and capital optimisation, while focusing on customer experience.”

Mortgages grew 4.4% on an annualised basis while the bank maintained momentum in SME lending.

“We continue to see a healthy pipeline to support new lending in 2017, in line with our loan growth targets,” said the bank, adding that it is focused on “tight operating cost control” and is on track to “deliver our target of £690 million – £700 million in underlying costs for this year.”

The bank said its restructuring activity and costs were in line with expectations.

“We have made significant progress on network optimisation and branch automation, with the continued rollout of smart ATMs and the start of the next stage of our branch transformation programme announced earlier this month.

Guidance remains unchanged from that provided in September 2016:

CYBG is holding its annual general meeting today (Tuesday) in Melbourne and will publish its interim results on 16 May.

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