The owner of Clydesdale Bank and Yorkshire Bank reported a fall in mortgage drawdowns in the three months to the end of June 2018, following lower application levels in the three months prior.
Fierce competition has put pressure on pricing, CYBG said.
Mortgage growth over nine months to June has lifted 3.8% to £24.2bn, the group reported.
The group said the offer for Virgin Money agreed in April continues to progress as planned.
David Duffy, CYBG chief executive (pictured), said: “We have delivered another solid performance this quarter, achieving sustainable lending and deposit growth in a highly competitive market while maintaining a stable net interest margin and delivering further cost and process efficiencies in the business.
“We remain on track to deliver our guidance for FY18.
“The economic and political environment in the UK remains uncertain, but we remain focused on delivering our strategic objectives and capturing further growth opportunities.
“We continue to expect our recommended all-share offer for Virgin Money to complete in calendar Q4 2018, subject to shareholder and regulatory approvals, creating the UK’s first true national competitor to the status quo.”