(Reuters) - Lender CYBG Plc (CYBGC.L) posted higher mortgage lending in the first quarter, but said growth in the market would ease over the remainder of the financial year 2018.
The company, which made its London debut after it was spun off by National Australia Bank (NAB.AX), said it continued to expect mid-single digit growth in balances for the year.
CYBG said new lending to small and medium-sized businesses (SME) rose 1.4 percent to 567 million pounds ($795 million) in the three months ended Dec. 31.
CYBG is one of Britain’s challenger banks that emerged after the financial crisis to fill a gap in small business lending and capitalise on problems at the big banks.
Mortgages increased 7.4 percent to 23.9 billion pounds from a year earlier.
CYBG said its expected to see mortgage price stability through the remainder of the financial year 2018. In November, it had said it would face price pressure in the business.
Both home-buyers and shoppers are under pressure from a squeeze on real take-home pay as consumer price inflation rises while wage growth slows.
“Despite the ongoing uncertainty in relation to the terms of the UK’s withdrawal from the European Union and its potential impact on the outlook for the UK economy, we remain confident in our ability to deliver the group’s FY18 and medium-term guidance,” CYBG said.
CYBG, which runs the Clydesdale and Yorkshire banks, reported quarterly net interest margin of 216 basis points, down from 221 basis points in the fourth quarter.
The lender said its CET1 ratio was 12.4 percent at Dec. 31, “comfortably” within its operating range.
Customer deposit balances rose 14.8 percent to 28.7 billion pounds.
Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty