Clydesdale’s Thorburn hints at job losses

CLYDESDALE Bank boss David Thorburn has hinted at job cuts as part of a three‑year “efficiencies programme” after unveiling a 4 per cent rise in profits in tough trading conditions.

Thorburn, chief executive of the UK arm of National Australia Bank, said banks would have to look at their cost bases as both business volumes and profit margins came under pressure in a challenging climate.

Unveiling an underlying profit of £533 million in the year to September against £511m last time, Thorburn said: “You might get job losses. I would not rule them out.

“Sometimes [efficiencies] do affect people. That does create job losses from time to time. I don’t like it, it’s regrettable, but we do not think we can look at volumes or margin [for growth].”

Thorburn said the latest trading performance was testament to the effectiveness of “sticking to the knitting” of organic growth.

NAB UK, which also owns Yorkshire bank, has walked away from two UK banking auctions in the past two years, most recently the current bidding for the 600‑plus Lloyds branches on the market, and last year the sale of 300 Royal Bank of Scotland branches.

Thorburn revealed that Clydesdale and Yorkshire have made £12.2 billion of new loans in the past two years, outstripping the commitment made two years ago to lend £10bn.

“It would have embarrassed us if we did not deliver the increase promised, but we felt back then it was more important to put a stake in the sand on lending than focus on possible embarrassment,” he said.

NAB UK made £7.5bn of new business and mortgage lending in the past 12 months. “In these tough conditions, we can be proud of this decent performance,” Thorburn said.

NAB disclosed yesterday that its group cash earnings in the year rose 19 per cent to A$5.5bn (£3.7bn), mostly driven by increased revenues in business and personal banking in Australia.

Group revenue rose 5.7 per cent to A$17.6bn.