The National Australia Bank announced that Clydesdale Bank will be floated in the stock market and will have 70-80 per cent of its own shares transferred from demerging with the bank.
Clydesdale Bank, once broken up from the NAB, will give current NAB shareholders a chance to find public investors in the London Stock Exchange. The demerging is expected to happened by the end of the year.
NAB said it was a complex and substantial undertaking and it could address a great number of issues.
Clydesdale Bank received £2.7 billion worth of fines from the regulator due to several employees editing PPI information before sending it to the Financial Ombudsman service. It has also repaid around £420 million this year, surpassing its £75m forecast the previous year.