Yorkshire Bank shows strength
INCREASED business lending and strong customer retention has boosted Yorkshire Bank’s performance amid the global banking crisis.
The bank, which has 77 locations across the UK and seven in Yorkshire, saw business lending rise by 14% nationwide for the six months ended March 31, 2009 representing £1.2bn of new money to support local firms.
The cash is part of £1.9bn in new lending £600m of which is in mortgages.
In Yorkshire, the bank continued its strong performance with average lending growing by 13% – highlighting its commitment to the local economy.
In the last six months, Yorkshire Bank increased lending by 19% in Leeds, 23% in Bradford, and 2% in the Tees Valley.
Its traditional banking model ensures that every pound raised from local deposits is reinvested back into lending for local businesses.
Among deals were supporting the development of a new 300 cover Kashmiri restaurant near The Royal Armouries, Leeds, by Mumtaz Leeds, which has created 100 new jobs.
Yorkshire Bank regional director in Yorkshire, Kath Myers, said, “These results clearly demonstrate how our traditional banking approach is helping local businesses to succeed.
“We are committed to supporting businesses in the towns and cities in which we operate and our clients tell us they like the fact that the money they bank with us goes back into supporting their local economy.”
The bank’s strong funding position was further improved by momentum in deposits, which increased nationally by 15% – almost five times higher than the industry average. Regionally deposits grew by 11%.
The bank also expanded its customer base by five% in the six-month period.
Meanwhile, parent group National Australia Bank (NAB) once again reiterated that it has no plans to sell either Yorkshire Bank or Clydesdale Bank – its other British interest – despite reporting a 64% fall in earnings.
NAB reported a 9.4% fall in cash profit for the first half of the year, a divident cut and higher bed debt charges and warned investors that worse was to come.
Last month, NAB said it would cut its first-half dividend by 25 per cent, its first payout cut since 1991, becoming the second local bank to cut its dividend in the current slowdown.
