National Australia Bank (NAB) has readjusted the total amount it believes will be necessary to deal with payment protection insurance (PPI) claims related to Clydesdale Bank.
It is currently expected that additional PPI provision (which will need to be recognised in finalising the Group’s 2015 Full Year accounts) may be in the range of £290 million to £420 million, primarily driven by increased costs to run the remediation program and impact of the past business review.
In relation to interest rate hedging products, based on current redress calculations for completed reviews, and assuming redress calculations remain consistent, it is expected that an additional provision in the range of £60 million and £80 million may also be required at the 2015 Full Year result. Any provision taken will be reported in cash earnings as a specified item.
NAB is still looking to demerger both the Clydesdale and Yorkshire Banks.
