Clydesdale Bank owner CYBG has highlighted uncertainty created by the UK’s vote to leave the European Union, which it said could impact on demand for credit.

However, the Glasgow-based group said it is well-placed to cope with any change in economic conditions after making good progress in recent months.

In an update on third quarter trading, CYBG said: “Following the EU Referendum, we are mindful of the greater uncertainty now facing the UK economy and how this will impact on our customers and the demand for credit.”

The group, which also owns Yorkshire Bank, noted that as a UK-focused business it will be impacted by any changes in economic conditions such as interest rates, house price inflation and unemployment.

CYBG plans to keep a close eye on the outlook for such measures, all of which influence demand for lending.

Economists have suggested the Brexit vote could see the UK housing and labour markets come under pressure. Consumer confidence may dip while businesses could put investments on hold.

CYBG noted the possibility that the Bank of England may cut interest rates by 0.25 percentage points to a fresh record low of 0.25 per cent in order to help encourage businesses and consumers to carry on spending.

It said such a cut could wipe up to £15m off net income next year, if implemented in the current quarter.

However, the bank said: “Although there is some uncertainty as to the potential medium term impact arising from the EU Referendum outcome we do not expect any significant impact in the short term.”

It added: “There are no current indications of a reduction in demand for credit in the short term.”

The relatively sanguine view of the potential impact of the Brexit vote appears to contrast with the approach taken by Lloyds Banking Group, which owns Bank of Scotland.

Lloyds yesterday announced plans to shed another 3,000 jobs and close a further 200 branches by the end of 2017 saying a deceleration of growth in the UK economy seems likely following the vote.

The bank made the announcement alongside results for the first half of the year, which saw statutory profits more than double to £2.5 billion, from £1.2bn last time.

The group, which is around ten per cent owned by the taxpayer, increased its interim dividend by 13 per cent, to 0.85p from 0.75p last time.

CYBG chief executive David Duffy said: "We are making good progress in executing our strategy.”

Clydesdale and Yorkshire banks regained their independence in February, when the CYBG business was demerged from National Australia Bank.

CYBG, which employs around 4,000 in Scotland, completed a stock market flotation that valued it at £1.6bn.

Loans and facilities provided to SMEs increased four per cent in the first nine months of the year, to £ 1.5bn. The group said Bank of England data showed it had grown its share of the mortgage market in the five months to May.

The group remains on track to cut costs by £730m in the current year.

Shares in CYBG closed down 3p at 253.4p.

Lloyds Banking Group shares closed down 3.25p at 52.5p.