Clydesdale Bank in trouble?...should I be worried?
Discussion
http://www.bbc.co.uk/news/uk-scotland-scotland-bus...
I've money deposited with them. It appears there are reassuring words from Head Office and it's all just a 'restructure' but I'm concerned nonetheless. I'm not normally prone to a knee-jerk reaction however taking into account the UK taxpayer isn't there to bail them out, I could be persuaded
Thoughts?
Ta,
Ali
I've money deposited with them. It appears there are reassuring words from Head Office and it's all just a 'restructure' but I'm concerned nonetheless. I'm not normally prone to a knee-jerk reaction however taking into account the UK taxpayer isn't there to bail them out, I could be persuaded
Thoughts?
Ta,
Ali
its the business banking side that they are looking at not the retail side of it anyway so your safe.
YORKSHIRE Bank is set to make some "tough decisions" about its future as its owner today announced the launch of a strategic review into its UK operations.
National Australia Bank, owner of the Clydesdale and Yorkshire Banks, said its UK business had to "respond to the poorer outlook and to adapt to structural changes in the UK banking market".
Cameron Clyne, group chief executive of NAB, said the fragile economy, couple with a weakening commercial property market, had impacted its UK revenues and bad debts in the final quarter of 2011.
TheBusinessDesk.com reported last month that Clydesdale and Yorkshire banks had closed down for new commercial property lending.
Mr Clyne said the strategic review would involve NAB working with its UK management to "reposition its business mix and structure".
Mr Clyne said: “It is clear that the UK economy is likely to experience a much longer period of subdued growth with the ongoing sovereign debt crisis in the Euro-zone and the continuing austerity program by the UK government.
"UK GDP declined by 0.2% in the December quarter. These difficult conditions have adversely affected the performance of UK banking.
"We will inform the market of the outcomes of the review, which we expect to occur by the time of our interim result in May 2012.”
David Thorburn, chief executive of Yorkshire and Clydesdale banks, added: “The time is right for us to re-examine our business given the recent reversal in the economic recovery, the structural changes in the UK banking market and our performance in that context.
"NAB, working with UK management, commenced a strategic review to reposition our business for this changed environment and to improve shareholder returns.
“Getting the right business mix and structure is vital and the review will shape that. However, it is already clear that the economics of our retail banking operation are strong.
“We will continue to support our branch network and invest in developing online and telephone banking services for both retail and business customers.
“Although reshaping the business will mean that we will have to take tough decisions, we are confident that the outcome will provide a strong and sustainable future for Clydesdale and Yorkshire banks.”
Over the quarter, net interest margins declined due to increased wholesale funding costs, higher deposit costs and increased liquid asset holdings.
Lending activity was subdued and fees were lower as a result of a further slowdown in economic activity, the group said.
YORKSHIRE Bank is set to make some "tough decisions" about its future as its owner today announced the launch of a strategic review into its UK operations.
National Australia Bank, owner of the Clydesdale and Yorkshire Banks, said its UK business had to "respond to the poorer outlook and to adapt to structural changes in the UK banking market".
Cameron Clyne, group chief executive of NAB, said the fragile economy, couple with a weakening commercial property market, had impacted its UK revenues and bad debts in the final quarter of 2011.
TheBusinessDesk.com reported last month that Clydesdale and Yorkshire banks had closed down for new commercial property lending.
Mr Clyne said the strategic review would involve NAB working with its UK management to "reposition its business mix and structure".
Mr Clyne said: “It is clear that the UK economy is likely to experience a much longer period of subdued growth with the ongoing sovereign debt crisis in the Euro-zone and the continuing austerity program by the UK government.
"UK GDP declined by 0.2% in the December quarter. These difficult conditions have adversely affected the performance of UK banking.
"We will inform the market of the outcomes of the review, which we expect to occur by the time of our interim result in May 2012.”
David Thorburn, chief executive of Yorkshire and Clydesdale banks, added: “The time is right for us to re-examine our business given the recent reversal in the economic recovery, the structural changes in the UK banking market and our performance in that context.
"NAB, working with UK management, commenced a strategic review to reposition our business for this changed environment and to improve shareholder returns.
“Getting the right business mix and structure is vital and the review will shape that. However, it is already clear that the economics of our retail banking operation are strong.
“We will continue to support our branch network and invest in developing online and telephone banking services for both retail and business customers.
“Although reshaping the business will mean that we will have to take tough decisions, we are confident that the outcome will provide a strong and sustainable future for Clydesdale and Yorkshire banks.”
Over the quarter, net interest margins declined due to increased wholesale funding costs, higher deposit costs and increased liquid asset holdings.
Lending activity was subdued and fees were lower as a result of a further slowdown in economic activity, the group said.
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