Yorkshire Bank demerger this year "a priority" for parent
Work on a potential demerger and flotation of Clydesdale and Yorkshire banks is continuing, parent National Australia Bank said this morning, describing an exit within this calendar year as "a priority".
In May, NAB said Clydesdale and Yorkshire Bank were to be demerged and floated on the London Stock Exchange and an Australian market.
NAB said the IPO transaction, by way of institutional offer, was a substantial and complex undertaking subject to a range of risks and issues, including shareholder vote, regulatory approvals and board approvals.
The bank said should the separation occur, Clydesdale would be "one of the leading mid-sized retail and SME banks in the UK", with long established franchises in core regional and select national markets, a strongly capitalised balance sheet and an experienced new team led by chief executive David Duffy in place.
In results for the six months to 31 March 2015, Clydesdale reported pre-tax profit of £155m, up from £90m in 2014, on revenue of £554m.