Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Q3 Reported, Is The CYBG (ASX:CYB) Share Price A Buy?

The CYBG Plc (ASX: CYB) share price will be on watch this morning after it reported its third quarter to the market.

CYBG is one of the challenger banks in the UK, it operates Clydesdale Bank, Yorkshire Bank and Virgin Money UK. It was spun out of National Australia Bank Ltd (ASX: NAB).

CYBG’s Third Quarter Trading Update

CYBG said that the mortgage book reduced by 0.2% to £60.4 billion because of higher redemptions in the quarter and lower new business volumes.

Business lending growth was 0.5% to £7.7 billion with lower new business volumes in a subdued market. The economy is uncertain with Brexit looming, perhaps a no-deal Brexit.

Personal lending grew by 5.7% to £4.8 billion mostly because of “strong” credit card growth. Customer deposits grew by 1.8% to £62.8 billion.

CYBG Net Interest Margin

In terms of the net interest margin (NIM), it fell by 0.03%, or three basis points, to 1.68% compared to the first half of 2019 due to the re-financing impact of a large volume of mortgage redemptions in the third quarter. The company said that the FY19 NIM is expected to be at the lower end of the 1.65% to 1.70% guidance range.

Virgin Money Integration

The integration of Virgin Money into the business continues to progress with around £45 million of annual cost synergies now delivered.

CYBG Capital Position

CYBG said it remains strongly capitalised with a CET1 ratio of 14.6%.

Payment Protection Insurance (PPI) complaint costs have been broadly in line with provision assumptions. CYBG, along with the rest of the industry, has seen a recent increase in PPI information requests – although the ‘uphold’ rates on these are very low.

Management Comments

CYBG CEO David Duffy said: “The Group continues to deliver on its targets with another quarter of resilient performance including disciplined lending and deposit growth in line with our recently announced strategy.”

Is The CYBG Share Price A Buy?

I think even just the sentiment downside that could happen if a no-deal Brexit were to occur could cause disruption and damage to CYBG, which is why I would want to hold off investing until Brexit is known one way or another.

[ls_content_block id=”14945″ para=”paragraphs”]

[ls_content_block id=”18380″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content