In These New Times

Clydesdale and Yorkshire Banks staff face uncertain future after Australian owner announces UK operations shake-up

This is Money

8th February, 2012

The future of more than 8,000 workers at Clydesdale and Yorkshire Banks have been thrown into doubt after the pair’s Australian owner announced a major shake-up of UK operations.

Yesterday National Australia Bank warned of making ‘tough’ decisions as it restructures its UK businesses amid deteriorating economic conditions.

The news comes as state-backed Lloyds Banking Group announced another wave of job losses and MPs debated bankers’ huge bonuses.

NAB revealed it had been hit hard by bad debts from its UK borrowers and smaller margins from savers amid stiff competition from rivals and record low interest rates.

The bank warned the UK economy would languish in the doldrums due to the debt crisis in the eurozone and Government cut-backs.

Although the bank said it remained committed to its 2.7m savers and mortgage customers, there are concerns it may be losing its appetite for the UK and look to sell off the business.

NAB’s pessimistic outlook gives the green light for potential suitors which have been eyeing up Clydesdale and Yorkshire’s 340 branches.

These include NBNK, the banking investment venture headed by city grandee Lord Levene.

Other potential bidders could include private equity firm Sun Capital which is reported to have had a £2bn takeover approach turned down last year.

In another gloomy day for banking Lloyds announced another 990 job losses – taking the total cull since its toxic takeover of HBOS in 2009 to over 30,000. The losses form part of Lloyds’ plans to cut 15,000 jobs by 2014.