Clydesdale bank to be spun off in February by parent National Australia Bank as profits fall

Scottish bank Clydesdale will stand on its own two feet again for the first time since 1920 after it unveiled plans to float in London and Australia next February.

Parent group National Australia Bank will spin off the historic lender by selling up to 25% to fund managers.

NAB shareholders will be given shares worth 75% of the group, which can then be sold on to other investors

“It will have a huge impact internally. For the first time in living memory staff can do what’s right for the customer rather than being told what to do by a parent group,” said chief executive David Duffy.

He has been meeting potential investors around the world for the past two months.

The listing will mean Clydesdale becomes the only listed Scottish bank headquartered in Scotland after RBS shifted its HQ to London.

It was founded in 1838 but taken over by Midland Bank in 1920.

NAB’s profits disappointed as the bank took another £390 million hit on mis-sold PPI insurance.

Third-quarter results showed customer lending up 4%.