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Clydesdale and Yorkshire Banks announce
annual results

London, 9 November 2007: National Australia Bank Group, owner of the Clydesdale and Yorkshire Banks, today released full year results for its UK Region Operations, for the 12 months to 30 September 2007.

2007 Highlights: Comparison with 12 months to 30 September 2006

Profits

  • Profit before tax* up 16.3% to £379m
  • Cash earnings* up 16.2% to £266m
  • Cash earnings, excluding fair value and ineffective hedging income, up 13.6% to £243m

Volume growth

  • Average gross loans and acceptances increased 19.4% to £24.6bn
    • Business Lending increased by 25.7% to £12.4bn
    • Mortgage lending volumes increased by 19.1% to £10.1bn
  • Average retail deposit balances increased 20.9% to £15.6bn

Performance

  • Cost Income ratio improved to 58.4% from 61.1% - down 270 basis points in the year*
    • 60.1% from 62.2% in Sept 2006, excluding fair value and ineffective hedging income
  • Cash earnings per average FTE increase by 20%, up £5k to £30k*
    • Up 12.5% (£3k) to £27k, excluding fair value and hedging income
  • Retail cover ratio improved to 63.4% in the year
  • Clydesdale Bank PLC’s (CB) long-term credit rating was upgraded during the year to AA- by Standard & Poors and to Aa3 by Moodys

Lynne Peacock, Chief Executive, said:

"These results demonstrate our UK business is continuing to deliver strong and sustainable growth during turbulent market conditions."

"In addition to a good retail performance, business banking through our integrated Financial Solutions Centres continues to power ahead with income, lending and deposits all up by more than 20% year-on-year demonstrating that we’ve really brought the strategy to life. This growth has been supported by a conservative approach to risk, liquidity and funding."

“As well as strong volume growth, our business achieved a number of key milestones in the year including the convergence of the Yorkshire and Clydesdale back-office systems, the roll out of a new branch teller system and our inaugural mortgage securitisation of £3 billion.”

* includes fair value and ineffective hedging income

Download the Annual Results in PDF