Ann: CYBG PLC Third Quarter 2019 Trading Update, page-126

@Transversal

I don't have any hard numbers unfortunately. From reading news articles I just get a feeling that UK mortgages rates in general are undergoing a slow and gradual decline, but no idea how much it's falling by exactly.

Speaking of margin compression for CYBG, I do wonder if there's been a hit to both volumes and margin in its mortgage lending business. In the latest update, they've reported surging credit card and unsecured lending, but a decrease in mortgage lending. So they have done more higher risk, higher interest lending (unsecured lending) but less low risk lending (mortgages). Yet net interest margin is guided to the bottom of the initial guidance range. In this situation, shouldn't the difference between interest earned and interest paid be greater, ie, net interest margin should be higher, not lower than originally anticipated?

But yes, it would be nice to quantify how much margin is potentially at risk here. Maybe it's not much at all, in which case CYBG looks very cheap indeed.