David Duffy’s CYBG reports higher first-half profit

CYBG, the lender spun off from National Australia Bank, posted a 15 per cent rise in first-half underlying profit on Tuesday and said it remained on track to deliver in line with guidance for the year.

The lender said underlying pretax profit rose to £123 million ($159 million) in the six months ended March 31st from £107 million, boosted by a 5 per cent growth in annualised mortgages, which it said was ahead of the market.

The Glasgow-based challenger bank said it was on track to record underlying costs of £690 million to £700 million this financial year.

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

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David Duffy, who joined the bank as chief executive from AIB in June 2015, said CYBG had delivered ahead of market growth in terms of mortgages and SMEs.

“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,” he said.

“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 £6 billion of lending to SMEs over the next three years.”

Mr Duffy also said the bank had maintained “excellent progress” on the delivery of its plan to provide a full service omni-channel model for customers, driven by the “expanding capabilities” it has 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.”

(Additional reporting: Reuters)