Yorkshire and Clydesdale pay £420m for PPI

Tim Wallace
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THE NATIONAL Australia Bank yesterday set aside £420m to pay for payment protection insurance (PPI) compensation claims.

The owner of the Clydesdale and Yorkshire Bank also made a provision of £250m to cover interest rate-swap mis-selling.

It also took a A$297m (£162m) impairment charge on computer systems, and a A$46m tax charge after changing its research and development plans.

The group expects to report full-year cash earnings of $5.1bn to $5.2bn, and to increase its dividend by 2.1 per cent to 99 cents.

“While it’s disappointing to have announced significant provisions for the legacy conduct issues we signalled in August, very real progress is being made in driving forward our clear commitment to fairness and investing in building a better bank for customers,” said David Thorburn, chief executive of Clydesdale and Yorkshire Banks.

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