Clydesdale doubles half-year profits to £89m

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.

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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.”