£425m mis-selling pain for Cydesdale and Yorkshire banks owner
THE owner of Clydesdale and Yorkshire banks has set aside an extra £425million to cover charges for mis-selling of financial products.
Parent company National Australia Bank (NAB) yesterday warned its annual profits would be 14 per cent lower than expected partly as a result of problems in the UK.
NAB said it had increased its provisions for PPI insurance mis-selling in the UK for the half year to September by £345million and for mis-selling of complex interest rate hedging products to small firms by £80million.
Taking these decisions gives us more clarity going into the future
It takes the amount of provisions announced since August to £670million and the total for the two issues to £1.2billion.
NAB, Australia’s fourth largest bank, is widely expected to sell Yorkshire and Clydesdale, with a combined 7,100 staff and 300 branches, once they are returned to financial health.
NAB’s new group chief executive Andrew Thorburn said: “Taking these decisions gives us more clarity going into the future and allows us to focus on the core Australian and New Zealand franchises which remain in good shape.”
