Yorkshire Bank owners hail UK performance

YORKSHIRE Bank owner National Australia Group today hailed the performance of its UK operations which saw annual pre-tax 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.

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.

“As a result of this strategic focus, a significant step forward has been taken towards restoring profitability with a 53% increase in pre-tax cash earnings.”

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.