CYBG reports mortgage book loss

Michael Lloyd

July 31, 2019

CYBG, which includes Clydesdale Bank, Virgin Money and Yorkshire Bank, has reported that its mortgage book decreased by 0.2% in Q3.

The book reached £60.4bn in the nine months to 30 June 2019. CYBG said this was due to higher redemptions in the period and lower new business volumes in line with the group’s optimisation strategy.

In October last year CYBG completed a takeover of Virgin Money. The group said these results were in line with the board’s expectations and good progress continues to be made with the Virgin Money integration programme.

David Duffy, chief executive officer of CYBG, said: “The group continues to deliver on its targets with another quarter of resilient performance including disciplined lending and deposit growth in line with our recently announced strategy.

“Our net interest margin is tracking as expected and we delivered further cost efficiencies in the period – even with the twin pressures of Brexit and the highly competitive mortgage market, we remain on track to deliver full year performance in line with our guidance.”

In June the group announced plans to launch two new brand offerings for intermediaries. There will be: Virgin Money Everyday for mainstream lending and Virgin Money Expert for more complex lending offers.

Duffy added: “At our Capital Markets Day in June we set out our plans to disrupt the status quo with new propositions, as well as updated financial, customer service and market share targets.

“Our ongoing performance and refreshed strategy under the Virgin Money brand underlines the opportunity we have to create a new force in consumer and business banking.”

Q3 originations were lower than Q2 but at better margins as pricing stabilised.

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