Clydesdale reports sales and lending up

<p>Chief executive praises the “positive results” ahead of next year’s planned flotation.</p>

Clydesdale Bank, which includes Yorkshire Bank, has reported positive results for the year to September.

The company has seen an increase in retail customer savings and lending, although the bank also confirms it has cut back on business lending as it prepares to float on the London and Australian stock markets.

Flotation is scheduled for early February – that's later than originally planned. A quarter of the group will be sold to institutional investors by National Australia Bank (NAB), its parent company.

The remaining 75 per cent of shares will be distributed to the company's existing shareholders.

NAB has also injected £620 million of capital into the Clydesdale group in order to build up its core captal. This brings the ratio up from 9.4 per cent of liabilities to 13.2 per cent.

In addition, the Melbourne-based lender has agreed to set aside £465 million to cover compensation for mis-sold payment protection insurance and mis-sold business loans. In previous years, a total of £1.2 billion has been set aside.

Lending up

Clydesdale, which is based in Glasgow, issued its latest results as part of NAB's full-year figures. Cash earnings were down by £2 million to £156 million, customer lending was up four per cent to £28.7 billion and UK mortgage lending was up 11.2 per cent to £20.5 billion.

David Duffy, Clydesdale's new chief executive, was positive about the results.

He said: "Our balance sheet is robust, with improved asset quality and stronger capital ratios. We are challenging the way we have worked historically, questioning the commercial viability of everything we do and creating more agile working practices."

By focusing on how and what the firm delivers for customers, Clydesdale has created a "strong platform on which to build and exciting future as an independent bank", he explained.

"In doing that, I believe we have the ability to offer our customers an attractive alternative to the status quo of banking in the UK."

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