Lender CYBG Plc (>> CYBG) on Tuesday posted a higher full-year pretax profit, but said the lending market would remain competitive in 2018 and that it would face price pressure in its mortgage and unsecured personal loan business.

The company, which made its London debut last year after it was spun off by National Australia Bank (>> National Australia Bank Ltd.), said underlying profit before tax rose 33 percent to 293 million pounds for the year ended Sept. 30.

CYBG said it expected to see modest pressure on net interest margin (NIM) in 2018, guiding to NIM of 220 basis points next year.

CYBG, which owns the Clydesdale Bank and the Yorkshire Bank, said 2017 net interest margin was stable at 2.27 basis points, in a “competitive environment”.

CYBG’s mortgage lending increased 8 percent to 23.5 billion pounds during the year, while lending to small and medium sized businesses jumped 6 percent to 6.8 billion pounds.

Common equity tier one capital ratio – a key measure of financial strength – fell marginally to 12.4 percent.

CYBG said that the board has recommended a maiden dividend of 1 pence per share.

The company, which is targeting more than 100 million pounds of sustainable cost reductions by 2019, said underlying costs in the full year 2018 would be below 650 million pounds.

(Reporting by Noor Zainab Hussain in Bengaluru; Editing by Saumyadeb Chakrabarty; Akshay Lodaya)

personalloan – BingNews