Clydesdale Bank parent company National Australia Bank (NAB) today said earnings at its UK arm, which slumped to its first annual loss last year, were improving following a drop in bad debts.
NAB chief executive Cameron Clyne said operating expenses at Clydesdale, which also owns Yorkshire Bank, were also lower – as was lending to businesses.
Overall, the Australian group reported a 3.6 per cent increase earnings to about A$1.45 billion (£956 million) for the first quarter of the year.
Clyne added: “This is a pleasing result, especially given operating conditions remain challenging both in Australia and the UK, notwithstanding recent improvements in financial markets.”
The group is shaking up Clydesdale in a move that will involve 1,400 job cuts by September 2015.
Clyne said NAB was making “pleasing” progress in its restructuring, and has now closed 38 business banking centres in the south of England to focus on its traditional strongholds of Scotland and Yorkshire.
He is due to give a further update on NAB’s medium-term strategy next month, which is expected to involve a push to reduce costs by encouraging more customers to bank over the internet.