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Yorkshire and Clydesdale Banks set aside further £38m for redress

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Yorkshire and Clydesdale Banks have set aside a further £38m to cover “customer redress issues”, including £15m for interest rate swap misselling.

The banks, owned by National Australia Bank, published their half-year results to the end of March last week.

The results reveal over the six month period, Yorkshire and Clydesdale Banks made a provision of £15m for interest rate swap misselling and a further £23m for “other customer redress issues”. The banks have not disclosed what this relates to but have ruled out investment advice as the driver for the claims.

The latest provision takes the total set aside for customer redress for issues other than payment protection misselling to £83m as at 31 March. The banks have also set aside an additional £51m for PPI redress.

Overall, Yorkshire and Clydesdale Banks reported pre-tax cash earnings of £54m, compared with a deficit of £38m in March 2012. Net operating income is down 17 per cent from £592m in March 2012 to £490m, while underlying profit has fallen 41 per cent from £244m to £145m.

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Your Mortgage Decisions director Dominik Lipnicki says: “The public is seeing lenders making good profits, paying good bonuses, while paying out a great deal in these claims. That money has to come from somewhere. Increasing the standard variable rate might be one option which is what some of the high-street lenders have done in the wake of the PPI scandal.” 

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