Clydesdale Bank posts higher first-half net interest income

Reuters

Published May 24, 2016 08:34

Clydesdale Bank posts higher first-half net interest income

(Reuters) - Clydesdale Bank Plc (L:CYBGC) on Tuesday posted a 2.5 percent rise in first-half net interest income, helped by growth in mortgage lending and lower term deposit and wholesale funding costs.

The Glasgow-based lender, which made its London debut in February, reported a net interest income of 400 million pounds ($579.52 million) for the six months ended March 31, from 390 million pounds a year earlier.

Customer lending grew 2.8 percent while deposits were up 4.6 percent.

CYBG, whose brands include Clydesdale Bank and Yorkshire Bank, said it expects loan-to-deposit ratio to remain under 115 percent and Common Equity Tier 1 (CET1) to be in the range of 12 to 13 percent.

The bank reported a CET1 ratio of 13.2 percent.

CYBG, which was valued at about 1.62 billion pounds in its London debut, said underlying cost-to-income ratio fell to 72 percent in the six months, from 71 percent a year earlier.

New business lending to SMEs rose 10 percent to 1.03 billion pounds.