NAB chief sees a future without Clydesdale

CLYDESDALE Bank’s future ownership was again thrown into doubt this weekend after the chief executive of its parent group, National Australia Bank, said he could foresee a time when it was not part of the business.

Cameron Clyne indicated in an interview that the British operations of NAB were likely to be offloaded to help improve the group’s balance sheet.

NAB tried but failed to find a buyer for the loss-making Clydesdale and Yorkshire banks following an extensive review.

At the end of April, Clyne announced a major restructuring, including the loss of 1,400 jobs over three years, a withdrawal from the UK commercial property market and the closure of 29 financial solutions centres.

Speaking to the Sydney Morning Herald yesterday, Clyne said there had not been a credible offer for the British businesses, but a deteriorating outlook for the UK economy triggered the cost cutting. Selling the business remained a possibility.

“At some point in the future, the UK will not be part of the business, or it will have a different return profile so it won’t be a drag on returns,” he said.

Scotland will be spared the worst in the restructuring, with about 60 jobs being axed and four financial solutions centres, offering business advice, closing.

The bank said the UK network of 337 branches will be retained as its focus switches to retail and small business banking.

TERRY MURDEN