Hundreds more jobs set to go at Lloyds and Clydesdale

Hundreds more banking jobs could be at risk after National Australia Bank (NAB) said it was taking a much more pessimistic view of the UK economy and was launching a strategic review of its wholly owned Clydesdale Bank.

The news came as Lloyds Banking Group yesterday confirmed 990 posts are to go at its offices in Romford, Dudley, Scunthorpe and Newcastle. Lloyds, which has already cut 28,000 jobs since it was bailed out by the taxpayer, said the latest cuts were part of 15,000 job losses it outlined last year.

NAB's chief executive, Cameron Clyne, said the view of the UK from the other side of the world had deteriorated, meaning that there is likely to be "a much longer period of subdued growth", in part due to the Government's austerity programme. He added that UK growth of just 0.2 per cent in the final quarter was much lower than in other countries where NAB has operations.

Clydesdale has been up for sale for almost two years now with a mooted price tag of more than £2.5bn.

At the same time Virgin has bought Northern Rock for £747m, Co-op Bank is lined up to buy 632 branches from Lloyds for about £1.5bn and Royal Bank of Scotland sold 318 branches to Santander for £350m.

The only obvious remaining bank buyer – Lord Levene's vehicle NBNK – appears to have gone cold on Clydesdale, which at one point it looked at combining with the Lloyds branches sold under Project Verde.

Clydesdale yesterday said its bad debt provisions had jumped to 1.27 per cent of gross loans from 0.86 per cent in the previous six months as both retail and small business customers felt the pinch.

Mr Clyne acknowledged that a straight sale of Clydesdale is now less likely.

He said: "The review will assess many options and it's still too early to determine the recommendation. We can say that retaining the existing business mix and structure will not be an outcome."

He promised to reveal the result of the review by May.

Analysts said commercial property lending is one area most at risk since it has performed badly recently.

Clydesdale employs more than 8,000 people and runs just over 300 branches under its own and Yorkshire Bank fascias. Its pre-tax profit fell from £49m to £21m in the year to November, although that was after a £116m provision for mis-selling payment protection insurance.

Start your day with The Independent, sign up for daily news emails
News
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral