1,400 jobs to go at Clydesdale and Yorkshire banks
Changes will 'mainly affect' the south of England as Australian-owned bank records £25m losses
MORE JOB cuts have been announced in the banking sector, this time from Australian-owned Clydesdale and Yorkshire banks, which today said 1,400 posts will go by 2015. National Australia Bank said it had lost £25m from its UK operations in the second half of the financial year - compared to a £75m profit over the same period a year earlier.
NAB said it would close 29 of its Financial Solution Centres and focus on consumer and small business lending in the north of England and Scotland. Closures will "mainly affect" the south of England.
Cameron Clyne (pictured), the head of NAB, said the economic downturn had limited prospects for banking in Britain. "The action we are taking is needed to adapt to this current economic environment in the UK," he said, "and to reposition the UK banking business to improve returns for the group over the medium term."
Yorkshire Bank was founded in 1859 in Halifax, West Yorkshire, and has 185 retail branches, while Glasgow-based Clydesdale has 152 outlets. NAB bought the banks in 1990 and 1987 respectively.
Falling commercial property loans and a higher charge on bad debt, following a downgrade of the bank's credit rating last September, were blamed for the cuts, reports the BBC.
The Daily Mail reports that banking at Clydesdale and the Yorkshire bank appeared disrupted last month after customers were unable to withdraw money on their debit cards due to a "service issue". Additionally, a hike in mortgage repayments - from 4.59 per cent to 4.95 per cent - will be bad news for borrowers when it is applied from tomorrow.
News of the cuts, which reduce NAB's UK workforce from 8,300 to 6,900, follows a spate of redundancies in the banking sector, most recently from HSBC, which announced it would shed 2,200 jobs in the UK last week.