National Australia Bank is set to let go of Clydesdale and Yorkshire Banks and float part of the business.
As part of its de-merger plans, NAB will transfer 70-80 per cent of its shares in Clydesdale, which includes Yorkshire Bank, to NAB shareholders. The remaining 20-30 per cent will be floated on the stock exchange.
NAB hopes to have completed the deal by the end of 2015.
Acting chief executive Debbie Crosbie says: “Today’s announcement marks the beginning of an exciting new opportunity for Clydesdale and Yorkshire Banks. Our performance is improving and we’re providing real customer choice in the UK which is driving encouraging growth across our target retail and SME markets.”
Clydesdale’s interim results, published today, show pre-tax cash earnings increased 33 per cent to £118m in the six months to March.
It does not provide pre-tax profit figures, however underlying profits were up 2.2 per cent in the six months to March, compared to the six months to September.
Last month, the FCA fined Clydesdale Bank £20.6m over serious failings in the way it handled payment protection insurance complaints – the largest fine imposed to date for PPI-related failings.