Yorkshire Bank owner hails profits hike
YORKSHIRE Bank owner National Australia Group today hailed the performance of its UK operations which saw annual profits leap by more than 50% to £164m.
NAB’s Yorkshire Bank and Clysedale Bank also saw cash earnings increase by 53% to £118m over the 12 months to September 30 and said it had made £4.7bn of new business and mortgage lending in the period.
The group, which reported liquid assets of £10.1bn, said its UK operations were “firmly on track” to deliver against its two year £10bn new lending pledge.
The bank’s Manchester-based corporate and structured finance team has been of the most active in the North West in the last two years. This year it has tasken part in refinancing dealsd for SSL International and Begbies Traynor Group and provided a
£75m revolving credit facility for Lancashire telecoms firm Daisy Group.
Yorkshire Bank chief executive Lynne Peacock said despite the difficult economic conditions, Yorkshire Bank and Clydesdale Bank were confident about their prospects and had achieved a “substantial recovery in profitability”.
Ms Peacock said: “Our clear focus on supporting customers and maintaining a prudent approach to credit has proved to be very effective. We are attracting growing numbers of small and mid-corporate trading businesses and expanding our mortgage book which is greatly encouraging.
“Although the economy is in the early stages of recovery, we advanced £4.7bn of new lending in the year and remain firmly on track to deliver the two-year new lending commitment of £10bn we made last October.
“While national economic recovery will provide further challenges, Clydesdale and Yorkshire Bank is in a strong position and continues to send a clear message to new and existing customers that they have real choice and support in the market,” she added.
The UK operation also saw average gross loans and acceptances of £32.9bn and its charge to provide for bad and doubtful debts down 18% to £74m.
NAB said supporting customers in the early stages of the economic recovery remained a “key business priority” and had an “unwavering commitment” to providing funding, mirrored by the launch of its ‘Investing for Growth’ scheme for business
customers in May.
