CYBG improves margin guidance as mortgage volumes grow

Banking group CYBG narrowed its annual margin guidance to the upper end of its previous range, as lending volumes nudged up in its fiscal first quarter.

The company's net interest margin in the three months to December fell to 172 basis, due to sustained pricing pressure in the UK mortgage market.

However, CYBG narrowed its guidance for the full year to 165-170 basis points, at the upper end of the previous range. First-quarter mortgage volumes grew 1.5% to £60.0bn, benefitting from a strong pipeline coming into the quarter and good customer retention.

'The group has made a good start to the year and we are making encouraging progress on the initial stages of the three-year Virgin Money integration programme,' chief executive David Duffy said.

'Market conditions remain uncertain while we await the outcome of the Brexit negotiations, but we remain focussed on supporting our customers and delivering against the factors within our control.'

At 1:38pm: (LON:CYBG) CYBG Plc share price was +26.2p at 205p