Clydesdale and Yorkshire Bank announce annual results
MULTI-BILLION POUND NEW LENDING SUPPORTS CUSTOMERS
London, 27 October 2010: National Australia Bank Group, owner of the Clydesdale and Yorkshire Bank, today released full year results for its UK Banking(1) operations for the 12 months to 30 September 2010. Unless otherwise stated, figures are comparisons with the 12 months to 30 September 2009. Highlights are:
Financial Performance
- Pre-tax cash earnings(2) up 53% to £164 million
- Cash earnings up 53% to £118 million
- Retail deposits and longer term funding cover 105% of lending
- Strong liquidity with liquid assets of £10.1 billion
Customer Support
- £4.7 billion of new business and mortgage lending in the past 12 months
- Firmly on track to deliver against £10 billion two year new lending pledge
- Average gross loans and acceptances of £32.9 billion
- Average retail deposit volumes up over 11% to £23.1 billion: more than double the industry average growth(3)
Business Performance
- Interest earning assets up £2.0 billion (5%) to £41.1 billion
- Charge to provide for bad and doubtful debts down 18% (£74 million)
Lynne Peacock, Chief Executive, 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 £4.7 billion of new lending in the year and remain firmly on track to deliver the two-year new lending commitment of £10 billion 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. This was achieved whilst we further strengthened and re-shaped our balance sheet, maintained a strong capital position and supported our customers through challenging times.
"While national economic recovery will provide further challenges, Clydesdale and Yorkshire Bank is in a strong position and continues to send a clear message to new and existing customers that they have real choice and support in the market."
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(1) UK Banking 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.
(2) Cash earnings exclude fair value and hedge ineffectiveness income/expense and significant items. A full definition is set out in the NAB Profit Announcement under Glossary of Terms. The results above are those of the NAB UK Banking division and are not those of Clydesdale Bank PLC.
(3) Source: Bank of England - August 2010.
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