'Traditional' bank's profits rise

The Clydesdale Bank's head office in Glasgow

The Australian owner of the Clydesdale Bank has announced a rise in pre-tax profits for its UK operations.

The figure for the six months to March rose 17% to �194m, despite turbulent financial market conditions.

Chief executive Lynne Peacock said the growth had been achieved by "sticking to the sound principles of a traditional banking model".

The Clydesdale Bank, which was founded in Glasgow, employs 4,035 people in Scotland and has 153 retail branches.

National Australia Bank's (NAB) UK operation is made up of the Clydesdale and Yorkshire Banks.

Cash earnings were up 18% to �139m while average retail deposit volumes rose 17% to �17.5bn.

Average gross loans and acceptances went up 31% to �30.06bn.

Ms Peacock said: "By sticking to the sound principles of a traditional banking model, our growth has been achieved in a very balanced way with a prudent and disciplined approach to risk, liquidity and funding."

NAB said the three-year salary deal negotiated with the trade union Unite had provided employees and the company with "stability and assurance at a time of economic uncertainty".

The Clydesdale Bank sponsors the Scottish Premier League and is supporting the Scottish team for the 2008 Youth Commonwealth Games.

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