Lower charges for bad debts and an increase in lending to homebuyers have helped Clydesdale Bank double its profits during the first six months of its financial year.
The Glasgow-based lender, which also owns Yorkshire Bank, reported pre-tax cash earnings of £89 million for the six months to 31 March, up from £44m a year earlier, as bad debt charges fell 40 per cent and mortgage lending grew by £1.4 billion.
However, chief executive David Thorburn said the impact of “legacy conduct-related matters” continued to have an effect at Clydesdale, which is owned by National Australia Bank. Additional provisions of £13m were raised in the first half and the total amount set aside to cover claims of mis-sold payment protection insurance now stands at £126m.
Thorburn said: “We’re committed to building a better bank for our customers. I recognise there’s a great deal more to do but I firmly believe we’re on the right track.”