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LONDON (Alliance News) - CYBG PLC said Monday its trading in the third quarter of the year was in line with expectations as its offer for Virgin Money progressed as planned with completion targeted for the fourth quarter of calendar 2018.
CYBG's GBP1.70 billion all-share offer for Virgin Money "continues to progress as planned". With a fourth-quarter 2018 target completion, the lender expects shareholder documentation to be published on July 31 with shareholder meetings held on September 10.
For the nine months to June 30, the owner of Clydesdale Bank and Yorkshire Bank reported mortgage growth of 3.8% to GBP24.2 billion. The lender expects its financial year 2018 mortgage growth to be at the lower end of guidance - as previously indicated.
The bank's core small and medium sized enterprises grew 4.7% - with GBP420 million of gross loans and facilities written in the third quarter. Deposit balance grew 4.5%, to GBP28.6 billion, which is in line with asset growth.
CYBG's CET1 ratio in the three months ended June was 11.4% - with 15 basis points capital generation - which was in line with expectations.
Looking ahead, CYBG remains focused on delivering its financial year 2018 and medium-term targets despite the "highly uncertain" political situation in the UK.
Chief Executive Officer David Duffy said: "We have delivered another solid performance this quarter, achieving sustainable lending and deposit growth in a highly competitive market while maintaining a stable net interest margin and delivering further cost and process efficiencies in the business. We remain on track to deliver our guidance for financial year 2018.
"Our position as one of the UK's leading digital banks continues to strengthen: in May we launched our fully API-enabled account aggregation for customers and this month we announced a new innovative partnership with PayPal underlining our ability to work with tech players large and small to deliver new and convenient services for customers.
"The economic and political environment in the UK remains uncertain, but we remain focused on delivering our strategic objectives and capturing further growth opportunities. This includes the RBS Alternative Remedies Scheme where we plan to play a significant role following confirmation of the scheme timetable."
Shares in CYBG were down 0.2% Monday at 337.20 pence each.