Potential Â£1bn windfall in offing for Clydesdale

Clydesdale owner CYBG floated in February. Picture: Maurice McDonald/PA

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Clydesdale Bank is to meet institutional investors in London tomorrow as speculation mounts that it could be in line for an extra Â£1 billion to spend on investment or dividends.

The potential windfall for Glasgow-based Clydesdale and its sister brand Yorkshire Bank is due to an expected agreement with the Bank of England whereby smaller challenger banks will in future not have to keep more capital to back their loans than bigger rivals.

David Duffy, Clydesdale’s chief executive, has been in talks with the regulators about freeing up capital for the challenger banks since CYBG, the parent company, floated on the London Stock Exchange in February.

Duffy, who joined Clydesale as chief executive in June 2015 and whose career includes a stint as boss of bailed-out Irish lender Allied Irish Banks, is also expected to update investors on the progress of his planned five-year turnaround of the group.

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