NAB to float 25% of Clydesdale next year

Clydesdale will be floated on the London market in February. Picture: Maurice McDonald/PA

Glasgow-based Clydesdale, along with its Yorkshire Bank brand, is to be demerged from its Australian parent through a flotation on the London Stock Exchange.

Clydesdale chief executive David Duffy said: “This is another important step towards becoming independent for our Clydesdale and Yorkshire Bank brands. We will be able to shape our own strategy, build a better bank for our customers, and deliver long-term and sustainable growth for our shareholders.

“We already have a strong customer franchise and now we have a great opportunity to challenge the market with enhanced products and outstanding customer service.”

The sell-off had been expected to take place before the end of this year but will now happen in February, with institutional investors being offered 25 per cent of the shares.

The remaining 75 per cent of Clydesdale will be held by existing NAB shareholders, who will receive one share for every four they hold in the Melbourne-based group.

NAB chairman Michael Chaney said: “Having assessed a number of alternatives, the NAB board considers the demerger – in conjunction with the opportunity to undertake the IPO – is the best exit option and is likely to enhance value for NAB shareholders over the long term.”

Group chief executive Andrew Thorburn added: “Following the demerger, NAB is likely to benefit through a combination of improved return on equity and capital generation given the higher profitability and returns currently generated from NAB’s core Australia and New Zealand businesses.”

Clydesdale’s annual report, published last month, showed Duffy was awarded a £500,000 signing-on bonus when he joined the lender in June, giving him a total pay package of £1.35 million in his first few months in the job.