The Glasgow-based company, whose brands include Clydesdale Bank and Yorkshire Bank, said trading in three months to June 30 was in line with its expectations and that it was targeting a “modest” inaugural dividend for the current year.
The bank said underlying operating costs for the full year would be below £680m, at least £10m lower than previously thought.
CYBG’s mortgage book grew to £22.8bn by June 30, from £22.4bn at the end of March 2017.
CYBG said its net interest margin rose to 229 basis points in the nine months to June from 226 basis points in six months to March, as deposit repricing help offset asset yield pressure.
CYBG said in September last year that it would invest more than £350m over the next two years to reduce costs and increase efficiencies in a tough trading market.
The company is targeting more than £100m of sustainable cost reductions by 2019.
Common equity tier one capital ratio - a key measure of financial strength - slipped to 12.4 per cent at June 30 from 12.5 per cent in March on restructuring costs.
David Duffy, the chief executive of CYBG PLC, commented: “We have delivered another solid performance this quarter, with increased momentum in mortgage and core SME balance growth despite the competitive environment.
“Further operational improvements during the year have enabled customer loan growth and cost efficiencies.
“We remain on track to deliver our guidance for FY2017, and now expect underlying operating costs to be below £680m which is testament to the success of our restructuring programme.”