Strategic success at Guernsey-based Clydesdale Bank International has contributed to underlying growth in profits. Clydesdale and Yorkshire Banks, owned by National Australia Bank Group, report results for their banking operations for the 12 months to 30 September with underlying profits up by 4% to £533m.
James Blower, Managing Director of Clydesdale Bank International says this Guernsey-based operation contributed significantly to the profit uplift this year. Blower confirms that a lot of its current business comes through, “Wealth managers, offshore bonds, other tax structures like QROPS, Wraps, Sipps, and simple trusts.”
A key reason for the current success lies in its strategy of setting out a stall that promises consistently good rates. Blower confirms that the Bank is offering “particularly attractive rates right now, so we’re currently top of the market on five year, joint top on three year, and in the top three on one year.”
Five years is a long time to lock money away but as Blower confirms its 60 month fixed rate account (paying 4.15% per annum) is in actual fact the Bank’s second most popular product - first is the one year fixed rate account (3.00% per annum). “Our five year is beating two and three year accounts, and its beating 30 day notice and instant savings account. The reason for its popularity is it appeals to people who want certainty for their savings income.”
Clydesdale Bank International also says it has benefited from more savers shopping around for deposit compensation scheme levels and as they’ve reduced their overall deposit sum with one institution, new customers have opened accounts with the bank.
An intriguing trend in currency speculation at the high end of the private sector market has also been noticed as sterling switches into AU$, CA$ and the Norwegian kroner have paid off. Despite these three being markedly strong currencies against sterling right now, Blower warns such a gamble taken without options could move against speculators and result in just as considerable losses as gains.
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