Lender CYBG reports higher first half profit

The lender said underlying pre-tax profit rose to £123m in the six months ended March 31 from £107m, boosted by a 5 per cent growth in annualised mortgages, which it said was ahead of the market.

CYBG also maintained its other forecasts for fiscal 2017, saying that momentum in customer lending would help it deliver mid-single digit percentage growth.

David Duffy, chief executive Officer CYBG PLC, commented: “In the first half of this year we have maintained momentum in delivering our strategic priorities and commitments, and as a result are delivering significantly improved financial performance.

“Our half year results show improved underlying profit, good loan growth, stable margin, continued delivery of our cost programme and improved returns - all delivered in a highly competitive market and continuing low growth, low interest rate environment.

“As the only true full service challenger bank of scale across both retail and SME in the UK market, we have been able to deliver ahead of market growth in mortgages and growth in core SME banking, as well as making a strong start to our commitment to provide up to £6bn of lending to SMEs over the next three years.

“We have maintained excellent progress on the delivery of our plan to provide a truly full service omni-channel model for customers, driven by the expanding capabilities we have through our iB digital platform.

“Whether it be prototyping new technologies, opening the UK’s first consumer innovation lab, Studio B, or collaborating with FinTech partners with the development of our new small business e-lending solution, we are building a bank focused on a differentiated customer experience, that will put customers more in control of their money.”