CYBG Plc said it expected to deliver double-digit return on tangible equity by the end of 2019, sooner than it previously forecast, banking on its ability to reduce costs and increase capital efficiencies despite tough market conditions.
The Glasgow-based lender, which was spun off by National Australia Bank Ltd, Australia's biggest lender by assets, said it would invest more than 350 million pounds (350.14 million pounds) over the next two years to drive capital and cost efficiencies.
The lender said its cost to income ratio would be between 55 percent to 58 percent by 2019-end. It had previously forecast a ratio of under 60 percent by 2020.
Annual loan growth would be mid-single digits by the end of 2019, CYBG added.
CYBG, whose brands include Clydesdale Bank and Yorkshire Bank, reiterated its full-year outlook for net interest margin and underlying operating costs, adding that trading had continued in line with expectations.
(Reporting by Noor Zainab Hussain and Esha Vaish in Bengaluru; Editing by Sunil Nair)