Clydesdale Bank swings to profit following job cuts

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Glasgow-based lender Clydesdale Bank has returned to profit after completing its restructuring programme ahead of schedule.

The firm, which also owns the Yorkshire Bank brand, has cut 1,400 roles as part of a turnaround strategy implemented by its parent group, National Australia Bank (NAB).

For the year to September, Clydesdale posted a pre-tax profit of £127 million, compared with a £183m loss the previous year, as charges for bad debts fell £473m to £158m.

Chief executive David Thorburn said: “The restructuring of our business over the past 18 months has been substantially completed a year ahead of schedule.

“Lower charges to provide for bad and doubtful debts were instrumental in this.”

However, Clydesdale revealed that it had set aside an extra £130m to compensate customers who were mis-sold payment protection insurance, bringing the total bill to £152m.

Melbourne-based NAB, headed by group chief executive Cameron Clyne, said its overall profits grew 9.3 per cent to A$5.9bn (£5.6bn).