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Q1 Trading Update


Clydesdale and Yorkshire Banks

London, 19 February 2009: National Australia Bank Group, owner of the Clydesdale and Yorkshire Banks, today released a trading update for its UK Region’s* operations in the quarter to 31 December 2009.

Customer Support

  • The business remains on track to deliver £10 billion of gross new lending to businesses and mortgage customers over the next two years


Business Performance

  • Cash earnings benefited from a lower bad and doubtful debt charge, albeit still above historical levels, and an easing of funding costs
  • Underlying net interest income continued to improve during the quarter as basis risk moderated and front book margins strengthened across key personal and business products
  • Competition for deposits remained strong; other operating income remains under pressure
  • The ratio of 90+days past due and gross impaired assets to Gross Loans and Acceptances increased to 2.90% at end December 2009 from 2.61% at end September 2009, driven predominantly by the commercial property portfolio



  • The UK operating environment remains challenging despite some early signs of economic recovery


Cameron Clyne, Group CEO, said:

“Our UK business remains well positioned to benefit from any improvement in operating conditions. We will continue to monitor market developments in the UK.”

Lynne Peacock, Chief Executive, added:

“While the signs of economic recovery are encouraging, our prudent strategic course remains unchanged and we are firmly focussed on growing our existing business.

“Playing a different game has served us well in keeping our business safe, strong and secure throughout the market dislocation. This is also true of our ongoing support for customers and we are firmly on track to deliver £10 billion of gross new lending to businesses and mortgage customers over the next couple of years.”

About the National Australia Bank Group

An international financial services organisation providing a comprehensive and integrated range of financial products and services, NAB is one of the world's top 30 financial services companies and serves 8 million banking and over 2.3 million wealth management customers.

* The UK Region consists of banking and wealth management activities in the UK operating under the Clydesdale Bank and Yorkshire Bank brands. It does not include NAB’s Wholesale Banking operations in the UK.

National Australia Bank Group results are available on

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