CYBG biggest FTSE 250 faller; mining boosts Weir
David Duffy: ‘We remain on track’
CYBG, owner of Clydesdale, Yorkshire and Virgin Money banks, was the biggest faller in the FTSE 250, down 9.55% after announcing that its mortgage lending slipped and its net interest margin fell.
The lender said that the value of its mortgage book had fallen 0.2% to £60.4 billion in the third quarter. Business lending inched 0.5% higher, while personal lending rose 5.7% helped by demand for credit cards.
Net interest margin – the difference between what banks earn from loans and pay for deposits – stood at 168 basis points for three month period ended 30 June, down 3 basis points from the first half.
The company, now expects NIM for the full year to be at the lower end of its previously promised 165-170 basis points range.
David Duffy, chief executive, insisted: “Our net interest margin is tracking as expected and we delivered further cost efficiencies in the period – even with the twin pressures of Brexit and the highly competitive mortgage market, we remain on track to deliver full year performance in line with our guidance.
“At our capital markets day in June we set out our plans to disrupt the status quo with new propositions, as well as updated financial, customer service and market share targets.”
Engineering giant Weir Group has seen a rise in orders and profit, after expanding its mining ambitions.
The company said there was increasing demand for technology to extract valuable metals from rocks that are needed for green energy projects.
Almost 75% of Weir’s revenue now comes from mining after it bought tool producer Esco last year.
The Glasgow-headquartered firm whose operations and employees are now almost wholly overseas, said operating profits for the year so far were up 5% to £172m.
Orders were up 17% to £1.4bn, while revenue stood at £1.3bn – a 22% increase.
Shares fell 4.42%.