24th May 2016 07:45
LONDON (Alliance News) - CYBG PLC, the owner of the Clydesdale and Yorkshire retail bank brands, on Tuesday said it now expects costs for the full-year to be lower than previously anticipated.
The bank, which separated from former parent National Australia Bank and listed in February, said it now expects its full-year costs to amount to GBP730 million.
In the first half underlying costs amounted to GBP353 million, which CYBG said puts it on track to deliver full-year costs "well below" the GBP762 million previously guided.
The cost guidance came as CYBG said underlying profitability increased to GBP107 million in the six months ended March 31, from GBP48 million in the six months to September 2015, driven by an increase in operating income, lower costs and reduced charges for bad debts.
Compared with the six months ended March 31, 2015, underlying profitability fell by GBP4 million, with higher operating income offset by higher costs incurred from being a standalone business.
"We have a strong momentum in our business, continuing to grow ahead of the market in mortgages and over GBP1 billion of SME loans and facilities were made available in the first half," Chief Executive Officer David Duffy said in a statement.
CYBG has seen "encouraging growth" in current accounts, Duffy said, 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."
Shares in CYBG were up 3.0% at 243.75 pence on Tuesday morning.
By Samuel Agini; [email protected]; @samuelagini
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