David Thorburn concentrates on UK as Clydesdale Bank results flatline

By MARTIN FLANAGAN
Published on 15/08/2012 00:00

THE chief executive of Clydesdale Bank, David Thorburn, is to step down from the executive committee at parent group National Australia Bank (NAB) to devote his time to the overhaul of the UK operation.

Issuing a brief update on its third-quarter trading, NAB also said its UK banking results were weaker due to lower revenue, mainly from increased funding costs.

The Clydesdale and Yorkshire banking operations are facing a review, announced earlier this year, which will see some 1,400 jobs lost by the end of 2015.

Thorburn’s abrupt shift in role came alongside a flat trading update which the bank said was partly due to restructuring charges and lower revenues caused by higher funding costs in the UK business.. Analysts said it would fuel speculation about how committed NAB is to its British subsidiary.

Thorburn, who continues to report to NAB boss Cameron Clyne, said: “We are moving forward with our strategy to become a stronger and more competitive business following our strategic review announcement at the end of April.

“My priority has always been the UK business and stepping down from the group executive committee will enable me to dedicate all of my time to this important restructure programme. The steps we are taking are difficult, particularly for our employees, but it is clear we have the right plan and I am confident that what we are doing in the best long-term interests of the organisation and our customers.”

It came as NAB’s cash profit in the three months to 30 June trod water at A$1.4 billion (£937.4 million), and below the A$1.5bn forecast by analysts.