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CEO hails 'solid performance'

Clydesale Bank beats cost cutting target

David Duffy
David Duffy: solid performance

Clydesdale Bank owner CYBG said it is on track to achieve its cost-cutting target.

It said underlying operating costs are expected to fall below £680 million, ahead of the £690m to £700m guidance.

In third quarter figures the group, which also owns Yorkshire Bank,  reported mortgage growth of 5.8% (annualised) for nine months to 30 June with record volumes of applications in the last three months.

It said there was a robust pipeline of support for SMEs and more than 80,000 B current accounts had been opened since launch in May 2016 with strong deposit flows.

The company said it will invest in its digital platform, iB and open more “flagship stores”.

David Duffy, chief executive, said: “We have delivered another solid performance this quarter, with increased momentum in mortgage and core SME balance growth despite the competitive environment.

“Further operational improvements during the year have enabled customer loan growth and cost efficiencies. We remain on track to deliver our guidance for FY2017, and now expect underlying operating costs to be below £680 million which is testament to the success of our restructuring programme.”

He said the digital transformation of CYBG, focused around the iB platform, “continues apace” and that customers are “already seeing regular service and products improvements from our £350 million investment programme”.

On the outlook, he added: ‘While the economic and political environment in the UK remains uncertain, we are focused on delivering our strategic objectives.

“We remain confident that the medium term strategy we outlined at our capital markets day in September 2016 will differentiate us from our competitors and deliver our FY19 targets as we seek to build a better bank for our customers and staff and improve returns for our shareholders.”


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