Jan 30 (Reuters) - CYBG Plc CYBGC.L , the lender spun off from National Australia Bank NAB.AX , said on Monday its first-quarter net interest margin was unchanged from a year earlier as asset yields came under pressure.
The lender said net interest margin in the three months ended Dec. 31 was flat at 222 basis points.
"As expected, asset yields came under pressure from the start of the period following the August 2016 base rate reduction, along with increased competition in retail lending markets," CYBG said. saw the benefits of deposit repricing begin to offset these pressures towards the end of the period, alongside other measures to reduce funding costs, including a modest drawdown on the Bank of England Term Funding Scheme in December."
The company said 574 million pounds ($716 million) worth of its lending was to small and medium-sized businesses.
CYBG's mortgage book was 22.1 billion pounds as at Dec. 31, a growth of 4.4 percent on an annualised basis.
The company also maintained its forecast for fiscal 2017, including that net interest margin in the year would be broadly flat with the year earlier. ($1 = 0.8016 pounds)