Clydesdale Bank owner profit up 33% to £293m

Clydesdale and Yorkshire Bank owner CYBG said on Tuesday its underlying profit before tax rose 33% to £293 million in the year to September 30.

CYBG — demerged from National Australia Bank early in 2016 — also said it is recommending payment of an inaugural dividend of 1p per share.

The challenger bank said it had 3% deposit growth to £27.7 billion and that its mortgage book rose 8% to £23.5 billion.

David Duffy, CYBG CEO said: “We have delivered a strong performance in 2017 having met all of our targets and recorded our first statutory profit in over five years.

“As a result, we are pleased to be recommending an inaugural dividend to our shareholders.

“This is a good first step in our three-year plan and we remain fully focused on the delivery of our medium-term targets, which factor in our cautious view of the economic outlook.

“We continue to leverage our unique focus in Scotland and the North of England, with our powerful Clydesdale and Yorkshire Bank footprint delivering ahead of market growth in both SME and mortgages.

“Our new digital brand, B, is proving highly successful in attracting new customers nationally, with over 100,000 accounts opened since launch.

“We are investing c. £350 million to drive a transformation in our customers’ experience right across the group.

“At the heart of this investment is our iB digital platform, which will enable us to provide a superior experience for all our customers and ensures we are ready for the dawn of Open Banking and PSD2.

“These results show how we’re building the UK’s leading digitally enabled challenger bank, offering stress-free banking to millions of personal and small business customers, and sustainable returns for our shareholders.”