Clydesdale sees stable trading as IPO looms

Clydesdale Bank, which is due to float on the London market next month, said trading in the past three months has been in line with management hopes.

Clydesdale is due to float next month. Picture: Maurice McDonald/PA

The Glasgow-based lender, being spun off by parent group National Australia Bank (NAB), saw annualised growth of 6.6 per cent in its mortgage book during the three months to the end of 2015.

Lending balances to small firms were “stable”, the bank said, adding that it continues to run off its non-core business lending.

Clydesdale, which also owns the Yorkshire Bank brand, said in its trading update: “Asset quality remains strong with continuing low impairment charges in the quarter.”

The firm, led by chief executive David Duffy, added 28,930 personal and business current accounts in the quarter ending 31 December, while its net interest margin was in line with guidance at an annualised 2.2 per cent.

“CYBG management continues to focus on tight operating cost control, alongside delivery of the planned programme of investment in the franchise to improve the product and service offering to customers and drive growth,” the bank said.

Institutional investors are being offered a 25 per cent stake in Clydesdale through the initial public offering (IPO), with existing NAB shareholders holding the remaining 75 per cent. They will receive one Clydesdale share for every four they hold in the Melbourne-based group.