Clydesdale Bank and Yorkshire Bank Half Year Results

27th April 2009

£1.9 BILLION OF NEW LENDING – DEPOSITS UP 15%

London, 28 April 2009: National Australia Bank Group, owner of the Clydesdale and Yorkshire Banks,today released interim results for its UK Region’s* operations for the six months to 31 March 2009. Unless otherwise stated, figures are comparisons with the six months to 31 March 2008. Highlights are:

Customer Support

• £1.9 billion of new business and mortgage lending in six months to 31 March 2009
• Average gross loans and acceptances increase 9.5% to £33.5 billion
• Average retail deposit volumes up 15% to £20.1 billion: almost five times industry average 

Business Performance

• Costs reduced £33 million (9%)
• Cost income ratio improves to 57.7% (from 58.3%), despite increased funding costs
• Provisions coverage ratio increases to 1.27%
• Mortgage balances three months in arrears 40% of the UK industry average 

Financial Performance

• Underlying profit of £238 million; Pre-tax profits of £70 million
• Retail deposits and longer term funding covered 97.2% of lending
• Liquid assets total £7.6 billion – more than doubled over past 18 months

Lynne Peacock, Chief Executive, said:

“We have an enduring commitment to supporting our customers in these challenging times.
Almost £2 billion of new lending has been advanced to business and mortgage customers at
a time when they have needed it most. Business lending was up over 14% and mortgage
lending has grown by over 4% demonstrating our ongoing support for the communities in
which we operate.

“Our strategy remains unchanged. We continue to drive ever-greater efficiency from our
operations and have elected to maintain a very conservative liquidity and capital position.
While this has had an inevitable effect on bank profit, the compelling security and strength of
our brands has attracted an extra £2.6 billion of deposits compared with the prior
corresponding period.

“This is a creditable performance from a good bank in exceptionally poor market conditions.
We continue to be ahead of peers on most key indicators with a strong underlying business
that remains profitable, despite the impact of the trading environment all UK banks operate in.
We remain in the best possible shape and are well positioned to fully capitalise on future
growth opportunities.” 

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