Bank Profits Boosted By SME Lending

Fri, 29 Oct 2010

An increase in lending to small medium-sized businesses in the UK has helped boost profits at Clydesdale and Yorkshire Banks by more than 50 per cent.

The bank’s annual pre-tax profits have risen by 53 per cent over the past year to £164m, according to parent company National Australia Bank (NAB).

Speaking on Wednesday, NAB also revealed that bad debts at its UK business have fallen 18 per cent on the previous year to £74m, while average retail deposits are up 100 per cent to £23.1bn.

In terms of business lending, Clydesdale and Yorkshire issued £2.7billion of new business loans to UK firms in the year to September 30, 4 per cent more than the previous year.

Lynne Peacock, chief executive of NAB Europe, said: "We have advanced £2.7bn of new lending to SMEs, mid-corporates, where we have been taking business off our bigger rivals."

"While economic recovery will provide further challenges, Clydesdale and Yorkshire are in a strong position and continue to send a clear message to new and existing customers that they have real choice and support in the market."

Clydesdale and Yorkshire, which between them have 2.7m customers and operate around 400 branches, have been the subject of takeover speculation in recent months after losing out to Spanish giant Santander in the bidding for 318 Royal Bank of Scotland branches.
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