Clydesdale and Yorkshire profits jump

The owner of the Clydesdale and Yorkshire banks has pledged to maintain its cautious approach to UK trading, despite seeing an 11 per cent rise in half-year profits and an improved trend on bad and doubtful debts.

National Australia Bank said the fundamentals of its UK operation were strong, after an increase in underlying profits to £264m for the six months to 31 March. The figure excludes its charge for bad and doubtful debts, which increased by 9 per cent, or £15m, on a year earlier but was down 28 per cent on the previous half year.

The bank said it remains committed to last year's pledge to deliver £10bn of new business and mortgage-lending by October 2011. National Australia has around 2.7 million UK customers through Glasgow-based Clydesdale Bank, which incorporates the Yorkshire Bank brand. The business has a total of 340 branches and is thought to be considering making bids for UK banking assets.