Former NAB subsidiary, the UK-based Clydesdale Bank says it is yet to see negative impacts on its business from Brexit despite ongoing uncertainty.
The Scottish bank, which was divested by National Australia Bank last year and is listed in Sydney and London, said in a first quarter trading update that it increased the size of its mortgage book at an annualised 4.4 per cent in the three months to December 31.
Deposits had grown almost five per cent in the quarter, the bank said.
In a statement to the ASX, chief executive David Duffy said Brexit uncertainty was yet to hit asset quality.
"Whilst there is some uncertainty created by Brexit, economic indicators in the UK have proved resilient since the referendum vote," Mr Duffy said.
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"To date we have not seen any negative impact on asset quality, but we will continue to monitor market conditions closely."
Mr Duffy said the bank is set to meet its target of cutting costs by five per cent as part of a "transformation program" that includes cutting staff numbers.
Clydesdale's net interest margin was stable at 222 basis points in the quarter, despite asset yields coming under pressure after the Bank of England cut interest rates for the first time in seven years in August 2016 and increased competition in retail lending markets.
Clydesdale's share price on the Australian Stock Exchange, where it is listed as CYBG Plc, was down 2.1 per cent to $4.67 at 10.37am (AEST).
CYBG is holding its annual general meeting in Melbourne on Tuesday.
