Yorkshire Bank owner says UK operations ‘on track’
YORKSHIRE Bank owner National Australia Group today said its UK operations remained “sound and resilient” and continued to support new lending.
NAB said Yorkshire Bank and Clydesdale Bank were on track to deliver their two-year pledge to advance £10bn of gross new lending to businesses and mortgage customers by October.
In a trading update for the quarter to the end of December NAB said its UK banking operation continued to be well positioned “although subdued demand for credit and low interest rates continue to restrict balance sheet and income growth”.
It said there had been no significant change in credit quality.
Yorkshire Bank chief executive Lynne Peacock said: “Against a background of continued economic uncertainty, our UK business continues to demonstrate its resilience and our prudent strategic direction is unchanged.
“Clydesdale and Yorkshire Banks remain fully committed to supporting new and existing business and personal customers.
We are firmly on course to deliver our two-year pledge to advance £10 billion of gross new lending to businesses and mortgage customers by October this year.”
NAB said the delayed economic recovery had led to some deterioration in the asset quality ratio of 90-plus days past due and gross impaired assets to gross loans and acceptances, which increased to 3.34% from 3.15% at September 30.
It said the UK economic outlook remained weak with slow recovery expected as the impact of public spending cuts and ongoing financial uncertainty in the Euro-zone continue to bite.
