CLYDESDALE and Yorkshire Bank owner National Australia Bank (NAB) reported pre-tax profits of £127m for the two banks during the year ending 30 September, up from a loss of £183m last year.
“The restructuring of our business over the past 18 months has been substantially completed a year ahead of schedule. The positive impact of our strategy is clear to see in the underlying business performance,” said group chief executive David Thorburn.
The banks incurred charges on bad and doubtful debts of £158m, down £473m from 2012.
“This was driven by lower business lending losses, reflecting improved asset quality, and the successful transfer of the commercial real estate portfolio to NAB at the beginning of the period,” said Thorburn.
The company reported that the UK economy continues to hurt performance, offsetting some of the benefits of the restructuring of the business and the 1,400 role reduction that the banks completed ahead of schedule.
Over the past year the banks have also launched a new mobile banking service and a new current account.