CANBERRA: National Australia Bank’s UK subsidiary has seen strong quarterly growth, ahead of a planned spinoff. Clydesdale Bank’s trade in the three months to December 31 has met the group’s expectations with its loan book maintaining 6.6 per cent annualised growth in mortgages, a NAB statement said on Friday.
There was good growth in owner occupied loans, and lending balances in Clydesdale’s core business – small- and medium-sized enterprises – remained stable.
“Asset quality remains strong with continuing low impairment charges in the quarter,” NAB said “The Clydesdale Bank Group continued to acquire personal and business current account customers, with 28,930 accounts opened, delivering net growth in the period.” The bank said the funding position also remained strong and Clydesdale’s management was focused on tight operating cost control.
NAB said it would proceed with a demerger of 75 per cent of Clydesdale to NAB shareholders and to sell the remaining 25 per cent in an initial public offer to institutional investors. The demerger, announced in December, has been a long time in the making with Clydesdale dragging on NAB’s performance.
