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UK's Clydesdale Bank's H1 profit up on one-off restructuring gain
May 15, 2015 / 10:00 AM / 3 years ago

UK's Clydesdale Bank's H1 profit up on one-off restructuring gain

(Reuters) - Clydesdale Bank Plc IPO-CLBP.L reported a 53 percent jump in first-half pretax profit as the Glasgow-based lender benefited from a one-off gain from capital restructuring last year and lower impairment losses on credit exposures.

Clydesdale Bank, which is the UK retail and commercial banking business of National Australia Bank Ltd (NAB.AX) and expected to go public in London this year, said it was seeing encouraging growth in current account switchers.

“Our presence in and commitment to core regional markets amongst SMEs means that we are well placed to compete as demand for credit returns,” Chief Executive Debbie Crosbie said in a statement.

Pretax profit increased to 133 million pounds ($209.4 million) for the six months ended March 31, from 87 million pounds a year earlier.

Clydesdale said net interest income for the period rose 1.7 percent to 390 million pounds, buoyed by higher income from home lending and deposit costs.

The bank had a one-off gain of 39 million pounds from the repurchase of subordinated debt as part of a capital restructuring in December last year.

CEO Crosbie told Reuters last week that an initial public offering of Clydesdale Bank was NAB’s preferred option, but it may still consider an offer for the whole of the business.

“I think to discount that would be naive and we wouldn’t do that ... the business considers all options,” Crosbie said in an interview.

NAB said last week it would sell between 20 to 30 percent of its British business, which includes Clydesdale Bank and Yorkshire Bank, through an IPO in London this year. The rest of the shares will go to NAB shareholders.

Reporting by Aashika Jain in Bengaluru; Editing by Gopakumar Warrier

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