Yorkshire Bank bosses warn on pressures despite £293m profit

Boses at Yorkshire Bank warned of pressures on its mortgage and unsecured personal loans business in the next 12 months despte boosting its profits.

David Duffy the CEO for Yorkshire Bank, pictured their offices at Briggate, Leeds..14th December 2015 Picture by Simon Hulme

The company, which made its London debut last year after it was spun off by National Australia Bank, said underlying profit before tax rose 33 per cent to £293 million for the year ended Sept. 30.

CYBG said it expected to see modest pressure on net interest margin in 2018, guiding to a margin of 220 basis points next year.

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CYBG, which owns the Clydesdale Bank and the Yorkshire Bank, said 2017 net interest margin was stable at 2.27 basis points, in a “competitive environment”.

CYBG’s mortgage lending increased 8 per cent to £23.5bn during the year, while lending to small and medium sized businesses jumped 6 per cent to £6.8bn.

Common equity tier one capital ratio - a key measure of financial strength - fell marginally to 12.4 per cent.

CYBG said that the board has recommended a maiden dividend of 1 pence per share.

The company, which is targeting more than £100 million of sustainable cost reductions by 2019, said underlying costs in the full year 2018 would be below £650m.