CYBG posts first full-year pre-tax profit for five years

CYBG Plc has posted its first full-year pretax profit for five years, and brought forward some of its growth targets as it makes a steady start to trading as a standalone business.

Tuesday, 22nd November 2016, 8:43 am
Updated Tuesday, 22nd November 2016, 12:17 pm
David Duffy the CEO for Yorkshire Bank, pictured at the bank's offices at Briggate, Leeds..14th December 2015 Picture by Simon Hulme

The lender, which made its London debut in February after it was spun off by National Australia Bank, said profit before tax rose to £77m for the year ending September 30, up from a loss of £285m a year earlier.

The bank said its target of achieving a double-digit return on equity has been brought forward to 2019, having previously aimed for 2020.

“CYBG has delivered on our promises to our customers and shareholders, building strong foundations for our future growth and positive momentum going into 2017,” said CYBG CEO David Duffy.

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The lender, which operates the Clydesdale Bank and Yorkshire Bank brands, said it has seen a limited impact on its business following Britain’s vote to leave the European Union, with its lending pipeline for small and medium-sized businesses higher than at the same stage last year.

Last month, Clydesdale said it made an offer to take over Royal Bank of Scotland’s Williams & Glyn business, after Spain’s Banco Santander called off discussions last month.

The bank said that its engagement with RBS is ongoing, though there is no certainty that any transaction will come about.