Solid profitability and balance sheet strength sees Clydesdale & Yorkshire Bank (CYBG) gain 3.8% to 246p on its first results update as a public company.

Underlying pre-tax profit in the six months to 31 March was flat at £107 million, compared to £111 million for the same period last year.

Balance sheet metrics also impressed investors as the bank's reserves to risk-weighted assets, a key measure of financial strength, gained to 13.2%versus 12.1% a year earlier.



Web - CYBG - 24 May 2016

Provisions for the miss-selling of Payment Protection Insurance (PPI) hit £450 million in the period but only £44 million of this has to be covered by CYBG under the terms of its spin-off from National Australia Bank (NAB:ASX) early in 2016.

NAB has provided a 'conduct indemnity' up to a maximum £1.7 billion of claims against the business.

CYBG lent more than £1 billion to small businesses during the period, a 10% rise compared to a year earlier.

Issue Date: 24 May 2016