Clydesdale and Yorkshire banks increase mortgage lending
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Clydesdale and Yorkshire banks have increased their mortgage lending by 4% in the twelve months to September 2010.
New lending of £4.7bn was advanced in the year including £2.7bn of business lending and £1.7bn of mortgage advances.
As a result of portfolio rebalancing, commercial property lending fell 14% whilst the momentum of lending to trading businesses was maintained and mortgage lending increased
Average gross loans and acceptances were broadly flat at £32.9bn as a result of consciously reducing commercial property, down 11.3% and unsecured personal lending exposures, down 12.5%.
National Australia Bank, owner of the two banks says the business remains firmly on track to deliver against its October 2009 pledge to make £10bn of new lending available to support business and personal customers by October 2011.
It also says it has a strong appetite to further grow its mortgage book and pipeline of trading and mid-corporate businesses.
Overall, the banks reported pre-tax cash earnings of £164m up 53%.
Lynne Peacock, chief executive, says: “Our clear focus on supporting customers and maintaining a prudent approach to credit has proved to be very effective. We are attracting growing numbers of small and mid-corporate trading businesses and expanding our mortgage book which is greatly encouraging. Although the economy is in the early stages of recovery, we advanced £4.7bn of new lending in the year and remain firmly on track to deliver the two-year new lending commitment of £10bn we made last October.
“As a result of this strategic focus, a significant step forward has been taken towards restoring profitability with a 53% increase in pre-tax cash earnings. This was achieved whilst we further strengthened and re-shaped our balance sheet, maintained a strong capital position and supported our customers through challenging times.
“While national economic recovery will provide further challenges, Clydesdale and Yorkshire Bank is in a strong position and continues to send a clear message to new and existing customers that they have real choice and support in the market.”
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