Sale rumoured for Yorkshire and Clydesdale banks

| February 7, 2012 | 0 Comments
Sale rumoured for Yorkshire and Clydesdale banks

There is growing speculation that National Australia Bank (NAB) may sell Yorkshire Bank and Clydesdale Bank after the Australian parent company announced a strategic review of the two banks’ operations.

The Australian economy is performing well and NAB reported strong profits for the final quarter of 2011 but with the UK economy at a virtual standstill the performance of the Clydesdale and Yorkshire banks has suffered.

NAB says the review is aimed at repositioning the banks to improve returns but analysts believe that this could signal that they could be offloaded, allowing NAB to focus on expansion in Asia.

In a statement accompanying NAB’s quarterly results, the group’s chief executive Cameron Clyne highlighted the eurozone crisis and the UK government’s austerity measure as factors which would extend the UK’s subdued growth.

“UK GDP declined by 0.2% in the December quarter. These difficult conditions have adversely affected the performance of UK Banking,” he said.

“Given our view that recovery is now a longer term prospect, NAB has commenced a strategic review, and will work with UK management to appropriately reposition its business mix and structure for the changed economic environment and improve returns,” he continued.

David Thorburn, chief executive of Clydesdale Bank, said “We will continue to support our branch network and invest in developing online and telephone banking services for both retail and business customers.

“We will also remain committed to providing support for savers and mortgage customers across the UK.”

There is speculation that NAB’s UK banking division may become a takeover target for NBNK, a newly formed UK bank run by former Northern Rock chief executive Gary Hoffman.

Meanwhile Lloyd’s Banking Group has announced the closure of three offices, with the loss of around 1,000 jobs, as part of its strategic review.

Tags: Cameron Clyne, , , ,

Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Leave a Reply

Visited 709 times, 32 so far today