Bad Debt Increases at Clydesdale and Yorkshire Banks

Clydesdale and Yorkshire Banks, which are British branches of National Australia Bank (NAB) recently announced that its proportion of bad loans increased in the third financial quarter of 2010.

The bank blames it on the inability of customers to meet their commitments. At the end of June, the overall number of loans in arrears for 3 months or more amounted to 3.36% of the bank's total book, which is 0.38% more than in the second financial quarter of this year.

It is important to note that the report of Clydesdale and Yorkshire is at odds with the overall trend on the British banking market because other banks have seen a decrease of bad debt.

On the other hand, Clydesdale and Yorkshire reported an increase in lending as it has almost its target of £10 billion in small and medium business loans and mortgages.

Let us remind that National Australia Bank is currently developing its strategy for UK. Earlier, the bank demonstrated its interest in RBS branches, which were eventually sold to Santander.