London, 27 October 2011: National Australia Bank Group, owner of Clydesdale and Yorkshire Banks, today released results for its UK Banking(1) operations for the 12 months to 30 September 2011. Unless otherwise stated, figures are comparisons with the 12 months to 30 September 2010. Highlights are:
David Thorburn, Chief Executive, said:
"Underlying profits are up 4% to £533 million in the year in a very difficult economic environment. Reflecting higher income levels and lower charges to provide for bad and doubtful debt in the year, our pre-tax cash earnings are up 45%, albeit from a low base.
"Clydesdale and Yorkshire Banks’ commitment to providing choice with a customer focus is demonstrated in these results. Outperforming the market on mortgage growth, including strong support for first-time buyers, we have also helped savers through our competitive cash ISAs, term-deposit accounts and Signature current account.
"Despite subdued market demand for credit, we have also attracted growing numbers of SME and mid-corporate trading businesses. Having advanced £7.5 billion of new lending in the year, we delivered our two-year new lending commitment of £10 billion three months ahead of schedule. We have advanced a total of £12.2 billion of new lending in the past two years – supporting customers at a time when they needed it most.
"The slow and fragile pace of national economic recovery will continue to provide significant challenges for our customers and our business in the year ahead. Given these challenges, a prudent and careful approach will continue to be taken to maintain the strength of our balance sheet. Our focus remains on long-term security and stability ahead of short-term profits."
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(1) The results above are for NAB UK Banking and not those of Clydesdale Bank PLC. 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) Unless otherwise stated, information in this document is presented on a cash earnings basis. “Cash earnings” is a key non-GAAP financial performance measure used by NAB. “Cash earnings” are calculated by excluding certain items which are otherwise included within the calculation of net profit attributable to owners of the company, in order to better reflect what NAB considers to be the underlying performance of the Group. 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. Underlying Profit excludes the charge to provide for bad and doubtful debts.
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