Clydesdale Cuts More Jobs To Pay For PPI Bill

May 25, 2016
by admin in PPI News

Following Clydesdale Bank’s £450 million addition for PPI refunds is an announcement to remove more than 26 branches in Glasgow and remove about 150 senior officers from its branches

After breaking off from its parent bank, Clydesdale, now known as CYBG including another NAB-owned bank, Yorskhire Bank, reported it had a 4.2 per cent fall in underlying earnings equivalent to £107 million in the last six months to the end of March.

Clydesdale was only taking about £44 million of the £450 million mis-sold PPI bill. NAB would handle the funding for the remaining £1.7 billion.

Meanwhile, its net income had increased to 2.5 per cent at £400 million in the following half-year, which it lost to refunding PPI policies. CYBG has yet to report whether it had refunded PBAs. No amount had been publicly disclosed as of yet.

Analysts said the bank was performing smoothly with a customer lending growth of 2.8 per cent in the first half of 2015. Deposits to the bank increased by 4.6 per cent.

Meanwhile, its mortgage balances grew by 4.9 per cent boosted by “very strong” buy-to-let borrowing ahead of last month’s increase in stamp duty.

David Duffy, chief executive of CYBG, said: ” I am very pleased to report good progress on all fronts in our first set of results as we execute our strategy as an independent company.”