Clydesdale Bank, owned by National Australian Bank, had announced its exit from the UK financial industry following a great number of financial troubles with mis sold PPI. As former Clydesdale Chief Executive David Thorburn steps down as chief executive, Chief Executive of Allied Irish Banks David Duffy will be stepping down from his bank and will take Thorburn’s place.
Duffy has steered AIB in 2011 to profitability after its nationalisation in 2010. The AIB has incurred catastrophic losses during the financial crisis.
From today, he will lead Clydesdale during flotation after Clydesdale announced it is quitting the UK industry and will focus on its Australian and New Zealand markets.
“The bank is well positioned to contribute to Irish economic recovery and to serve customer needs . . . I believe now is the right time for a new CEO to lead the bank through the next phase of its recovery,” said Mr Duffy.
Clydesdale’s troubles aside from tens of thousands of mis sold PPI are bad property loans and interest-rate hedging products. It has set aside £420 million for PPI compensation. Last year, it had provisioned £380.
Meanwhile, Clydesdale and Yorkshire had closed 28 “unsustainable” branches and a £45 million investment in customer improvements.