Clydesdale making ‘good progress’ and ready for Brexit - Duffy

CYBG (Clydesdale and Yorkshire Banking Group) demerged from National Australia Bank earlier this year and a third quarter update this morning said SME gross loans and facilities granted in the nine months to 30 June were 4 per cent higher than last quarter, while in the nine months to 30 June CYBG has made available £1bn of new loans and credit facilities to small and medium sized businesses.

Chief executive David Duffy said: “We are making good progress in executing our strategy.”

Net mortgage lending was £1.2bn in the nine months to 30 June, compared to £1.8bn in the prior period, with mortgage balances at 30 June of £21.7 bn.

Then bank said trading in the three months to 30 June 2016 has been in line with expectations and prior guidance.

In relation to Brexit, CYBG said it was mindful of the greater uncertainty now facing the UK economy and how this will impact on our customers and the demand for credit.

The banking group said its size and scale, strong funding base and balance of assets across retail and SME lending gave it the flexibility to adapt to the changing economic climate.

Mr Duffy added: “We continue to support our customers through the current period of uncertainty following the EU Referendum result.

“We made £ 1.5bn available to small and medium sized businesses in the first nine months of the year, growth of 4 per cent on the same period last year.

“As expected growth in mortgages returned to target levels after the surge in buy to let in Q2, with the majority of new business in owner occupied.

“We are pleased that the early customer reaction to B has been positive, with a high level of engagement on social media and positive reviews. B is already broadening our customer demographic and reach outside of our core regions and is now an integral part of our omni-channel strategy.

“We remain focused on delivering returns for shareholders through sustainable growth, lower costs and capital efficiency while adapting to the new economic environment.”