Clydesdale and Yorkshire Banks announce interim results

National Australia Bank Group, owner of the Clydesdale and Yorkshire Banks, has released interim results for its UK operations, for the 6 months to 31 March 2007.
These results demonstrate that the UK business has real momentum.

Highlights:

Comparison to 6 months to 31 March 2006

Earnings before tax up 20.4% to £183m
Post tax earnings up 22.6% to £130m
Average gross loans and acceptances increased 20.0% to £23.4bn
Average retail deposit balances increased 20.2% to £14.9bn
Cost Income ratio improved from 62.7% to 58.6% - down 6.3% on 64.9% in Sept. 2005
Cash earnings per average FTE increase by £6k to £29k, up 26%
Comparison to 6 months to 30 September 2006

Earnings before tax up 5.2%

Post tax earnings up 5.7%
Average gross loans and acceptances increased by 7.8%
Average retail deposit balances increased by 10.4%
Cost Income ratio improved by 90 basis points from 59.5% to 58.6%
Cash earnings per average FTE increase by £2k to £29k, up 7%

Lynne Peacock, Chief Executive Officer, said: “These results demonstrate the UK business has real momentum with further strong lending and retail deposits growth, firm cost control and a stabilisation in the bad and doubtful debt charge.

“The strategic agenda outlined in 2005 remains firmly on track and, at 58.6%, our cost to income ratio continues to fall – an improvement of some 6.3% since its peak in the September 2005 half.

“Across our UK operations there has been excellent average volume growth. Our network of integrated Financial Solutions Centres continues its strong delivery, with business lending volumes up by 28% on the corresponding period. Retail deposit volumes grew by over 20% on the corresponding period, with continued strong performance from our direct channels. Mortgage volumes also increased by 24% during the same period.

“Today’s results demonstrate this is becoming a strong and sustainable business which continues to deliver on its promises.”