The Elite Ayrshire Business Circle

The Elite Ayrshire Business Circle

Tuesday, 21 October 2008

Clydesdale Bank unveils excellent set of annual financial results

By: Murdoch MacDonald

National Australia Bank Group, owner of Clydesdale and Yorkshire Banks, has released full year results for its UK operations for the 12 months to 30 September 2008.

2008 Highlights: Comparison with 12 months to 30 September 2007


• Cash earnings after tax up 2.5% to £249m
• Underlying Profit up 11.9% to £518m
• Pre-tax profit maintained at £343m


• Net interest income up 8.1% to £879m
• Three consecutive years of flat costs
• Cost Income ratio improved to 57.9% from 60.1% - down 220 basis points in the year
• Retail and longer term funding covered 85% of lending
• Clydesdale Bank PLC’s (CB) long-term credit rating maintained at AA- by Standard & Poors, Aa3 by Moodys and AA- by Fitch

Quality growth

• Average gross loans and acceptances increased 27.6% to £31.4bn (includes nabCapital transfer)
• Average retail deposit balances increased 16.7% to £18.2bn
• Robust asset quality with a well secured, diversified portfolio
• Mortgage balances 90 Days Past Due stable and less than half the UK industry average
• Provisions coverage ratio maintained at 1.07%

Chief executive Lynne Peacock said: “These results demonstrate the resilience of our UK business, which has continued to deliver a strong trading performance and sustained profitability in extremely challenging market conditions.

“Differentiated in the UK by our adherence to the sound principles of a traditional banking model, the prudent growth of our business has been supported by excellent cost control, a careful approach to funding as well as effective credit and risk management.

“The strong foundations of our Retail business underpinned excellent deposit growth balanced with good quality mortgage business acquisition. Business banking through our integrated Financial Solutions (iFS) centres also performed very well whilst fine-tuning its risk settings.

“On virtually every measure, the performance of our business compares very favourably in the current market and we remain resolutely focused on the prudent development of our business.”

Willie Mackie (pictured above) is managing partner of the Clydesdale Bank Financial Solutions Centre in Ayr, covering the whole of Ayrshire.

He said: “In the current economic climate it is pleasing to see Clydesdale Bank announce such a set of strong trading results.

“With a Core Tier 1 Capital Ratio of 7.6% we continue to take a consistent and disciplined strategic direction supported by our regional business model.

“Whilst the market conditions over the past 12 months have become increasingly challenging, we have seen our customer base in Ayrshire increase.

“With so much uncertainty around, it is important to keep as close to our customers as possible.

“Across our commercial, agricultural and private banking teams we are constantly out of the office supporting our clients as much as we can. Now more than ever businesses want banking decisions made quickly and locally.

“In my experience, people want to speak to the decision makers and discuss their own challenges and opportunities.

We will continue to do this in Ayrshire to the best of our ability.”

Clydesdale Bank
Financial Solutions Centre
43 Alloway Street
Ayr KA7 1SP

Contact: Willie Mackie, Managing Partner
Tel: 01292 272072
Fax: 01292 280202


National Australia Bank Group

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