NAB cautious about future of Clydesdale Bank

by Richard Kilner

Story link: NAB cautious about future of Clydesdale Bank

The National Australia Bank (NAB) has raised question marks over the future of Clydesdale Bank following the appointment of Cameron Clyne as NAB’s new chief executive on 1 January.

Clydesdale has not been hit as hard as others in the recent financial maelstrom, with profits of £343m in November, only £1m lower than previously.

However, it may be sold off by NAB due to what is seen as a low rate of return, despite its strong performance during the financial crisis.

The Scottish banking sector has already undergone a swathe of major changes over the course of the last 12 months, with the government taking shares in RBS and the merger between Lloyds TSB and HBOS close to completion.

According to the Daily Mail, NAB has given a cautious commitment to retain Clydesdale and Yorkshire banks for the time being.