Clydesdale Has Left The UK After Drowning in Mis Sold PPI

January 8, 2015
by admin in PPI News

National Australian Bank (NAB) the parent of Clydesdale and Yorkshire, had opted out of the United Kingdom ahead of a stock listing as Clydesdale has become a drag in its sinking financial ship due to a large number of PPI complaints.

The bank has hired Korn Ferry to identify the successor to former UK boss David Thorburn, who had resigned ahead of a stock market listing that would indicate the rock-bottom profitability of the firm.

NAB said that Thorburn would be leaving later this year and they would be recruiting a new chief executive.

NAB’s UK market has become a big thorn on its side because of its ongoing provisions for payment protection insurance and interest hedging product troubles for smaller companies. It had a £450 million PPI bill and £250 million interest rate swap recompense, leading to a fall in its profitability.

According to NAB, Clydesdale needed a new leadership to turn around its market.

Meanwhile, Thorburn claimed that his efforts had put Clydesdale and Yorkshire banks “in much better shape.”

“I believe that the business requires a five-year commitment from me, particularly as NAB looks at options to accelerate the exit from its UK banking business and I felt this was a significant undertaking,” said former boss Thorburn.