Demergers imminent as NAB posts third quarter profit rise to $1.75bn
THE National Australia Bank, owners of Yorkshire and Clydesdale Banks, has made “substantial progress” on the planned demerger and IPO of their UK banking arms.
NAB reported that a £1.7bn provision had been put aside for future misconduct charges against its UK businesses, Clydesdale and Yorkshire.
The firm has been seeing $5.5bn to fund the exit from the UK banks, as is seeks to spin-off 80% of Clydesdale to shareholders and float the remainding 20%, subject to regulator’s approval.
Along with their third quarter update, which showed cash earnings of $1.75bn, and revenue was up around 4% as their Australian and New Zealand divisions grew.
NAB group chief executive Andrew Thorburn said: “Substantial progress has also been made on our intention to pursue a demerger and IPO of Clydesdale Bank over the last three months and we will provide the market with a detailed update of the proposed transaction at our 2015 Full Year results.
David Duffy, chief executive of Clydesdale and Yorkshire Banks, said: “In the third quarter, we have had solid earnings and strong growth in
mortgage lending and customer deposits.
“We continue to focus on delivering value and improved services to our customers by investing in new digital channels and the continued regeneration of our branch network.
“I am pleased with our progress in all areas and Clydesdale Bank is positioned well to deliver on our growth ambitions”.
