"The launch of B is the first major initiative for CYBG since the company's IPO in February."
The launch of B is the first major initiative for CYBG since the company’s IPO in February, and the app currently offers current and savings accounts alongside a debit card.
The Group also said it was in the 'early stages of development' of a B to Business proposition for small businesses.
Its digital channel now represents 24% of total sales.
In its interim financial report, CYBG reported a 9.8 rise in mortgage lending, with SME lending increasing 10% to £1bn.
Its mortgage portfolio increased by almost 5% to £21.5bn, largely as a result of intermediary lending, which rose by £1.1bn to £12bn.
Overall, the Group reported a rise in underlying profitability from £48m in the 6 months to September 2015 to £107m - driven by an increase in operating income, lower costs and reduced charges for bad debts.
However interim underlying profits fell by £4m to £107m which the group attributed to the cost of becoming a standalone business.
David Duffy, chief executive, said:
"We have a strong momentum in our business, continuing to grow ahead of the market in mortgages and over £1bn of small business loans and facilities were made available in the first half.
"Across CYBG we are focusing on the future now with confidence. Delivering great service to our customers is at the heart of our bank and over the next six months I am confident we will show continued progress against our targets and delivery of commitments for our customers, our people and our shareholders."
