Yorkshire Bank bosses warn on pressures despite £293m profit

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.

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.