54-693: Yorkshire Bank is a trading name used by Clydesdale Bank plc for its retail banking operations in England . The Yorkshire Bank was founded in 1859 as the West Riding of Yorkshire Provident Society and Penny Savings Society but the Provident Society was soon abandoned and the Bank then traded as the West Riding of Yorkshire Penny Savings Bank . After further abbreviations, its present name
108-567: A cost saving move. The following month, CYBG announced the closure of a further 9 Clydesdale branches and 17 Yorkshire Bank branches. In June 2018, CYBG plc announced it would acquire Virgin Money for £1.7 billion in an all-stock deal. Almost one in six employees are expected to lose their jobs in the takeover, which will result in retail customers being migrated to the Virgin Money brand over three years. The acquisition of Virgin Money
162-558: A fall in the value of investments could threaten a run on the bank. In a rescue sponsored by the Bank of England , the Yorkshire Penny Bank was acquired by a consortium of eleven clearing banks. Additional capital of £11.5 million was injected into the Bank and further guarantees given to cover potential losses. The old Board was replaced and a new bank of the same name was formed. The eventual deficiency of £2.5 million
216-609: A larger consortium. Consequently it was purchased by Midland Bank , the largest bank in the world at this stage, in 1920. Much later the Clydesdale became part of the National Australia Bank Group (NAB), between 1987 and 2016. Clydesdale Bank was divested from National Australia Bank in early 2016, with its new holding company, CYBG plc , trading on the London and Sydney stock exchanges. In June 2018, it
270-452: A limited liability company in 1882. Reid described the period 1890–1914 as "the tranquil years", but that did not preclude steady expansion of the branch network – from 92 to 153. That was to mark the end of Clydesdale's independent existence. In 1917 the bank was approached by London City and Midland (later Midland Bank ) and, although initially resisted, Clydesdale Bank was sold in 1920. However, it continued to operate independently and
324-529: A pamphlet to prominent figures in the county, leading to a public meeting in November at the Philosophical Hall, Leeds. A committee was formed to bring into being the West Riding of Yorkshire Provident Society and Penny Savings Society, with funds raised to finance both parts. In the event, the Provident Society proved uncompetitive with the large societies and it soon closed; the Bank then traded as
378-797: A period of time. National Australia Bank confirmed in October 2014 that it planned to leave the United Kingdom and was considering a number of options for Yorkshire and Clydesdale banks, including a possible stock-market listing. In October 2015 NAB announced that it would float Clydesdale Bank plc , including Yorkshire Bank, on the London Stock Exchange in February 2016 through an initial public offering, with an aim of raising £2 billion. Clydesdale Bank plc 's newly formed holding company CYBG plc began conditional trading on
432-470: A savings bank acting as a receiving agency for a number of penny banks in its area. (The Glasgow Savings Bank , for instance, had 97 of these by 1870.) What Akroyd envisaged was the Yorkshire forming and owning the local penny banks, and also being the receiving agent for their surplus funds. He began a campaign "to form a great network of penny banks and provident societies in the West Riding, guaranteed by
486-523: A stocks and shares department to the Bank and, as a result of the Boer War , developed a network of international correspondents. By 1908, deposits had risen to £17 million. In 1911, the Bank's deposits of £18.5 million were supported by reserves of only £468,000. Although these deposits were repayable on demand, the funds were largely invested in fixed rate government securities, which, although liquid, fluctuated in value. The directors feared that
540-449: A week, usually for an hour or two, and were generally known as "evening branches". By the end of 1860 the abortive Provident Society had been abandoned and it was decided to extend the Bank coverage from the West Riding to the whole county. The 1863 Savings Act caused problems: the Bank was prevented from using the word "savings" in its title without being registered under the Act. Registration
594-481: A year earlier, while post-tax earnings climbed 12.8 per cent to £229 million. Total income was up 8.7 per cent at £1,193 million, while net interest income climbed 14.6 per cent to £769 million. In April 2012, National Australia Bank completed a strategic review of its businesses in the United Kingdom and decided to scale back operations, completely stopping Commercial Property Investment lending and closing 29 Financial Solutions Centres, with
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#1732772532965648-705: Is the UK's sixth largest bank and in October 2024 was acquired by Nationwide Building Society. As with two other banks of Scottish origin, namely the Bank of Scotland and the Royal Bank of Scotland , the Clydesdale Bank retains the right to issue its own banknotes. In March 1838, an advertisement appeared for a new joint stock banking company in Glasgow, the Clydesdale Banking Company. It
702-469: The 1845–47 period, particularly to Australia, dogged the Bank for the next ten years and it was eventually taken over by the Clydesdale for a nil consideration; Clydesdale retained 19 of its 27 offices. Five years later, in 1863, Clydesdale acquired the more successful Eastern Bank of Scotland , like Clydesdale, also founded in 1838. Based in Dundee it was to have two separate offices and boards, one in Dundee,
756-640: The Bank actively encouraged accounts that had grown too large to switch to commercial banks. With time came changes in the Bank's leadership. Ackroyd resigned as President in 1879, and in 1891 Peter Bent died aged 64. He had become the first general manager in 1877 and under his guidance, deposits had risen to £5.7 million. This compared with the Glasgow Savings Bank, then the largest is the country, which had deposits "in excess of £3 million" in 1878. Bent's son-in-law Henry Sellers took over and remained general manager until 1914. He introduced
810-659: The Bank opened three Glasgow branches as well as its first country branches in Campbeltown and Falkirk ; a further seven had been opened by 1844. These were supplemented by the acquisition of the Greenock Union Bank; formed in 1840, it had four branches in the Glasgow hinterland. Following the purchase of the Greenock Union, there was little change in the structure of the Bank and there were still only 13 branches in 1857. In that year, Clydesdale became
864-399: The Bank was still trying to combine the strengths of the local penny banks with the requirements of a modern commercial institution. There were still 677 evening branches; these were deemed out of date and by 1955 only 79 remained. Instead, Ashworth wanted to increase lending to customers; and in 1959 the word "Penny", widely thought to be off-putting to large customers, was finally dropped from
918-515: The Bank's title, leaving just the simple Yorkshire Bank Ltd. Despite Ashworth's intentions, the bank's funds were still largely invested in British Government securities ("gilts"); only 4 per cent of assets were in overdrafts. As in 1911, falling gilt values again threatened a substantial deficit, and by 1952 another increase in capital was required. Midland Bank held 37.5% of the shares and did not wish to continue, selling its holding to
972-502: The Clydesdale Bank had mis-sold unregulated tailored business loans and that the bank's own internal review of the mis-selling had serious shortcomings and lacked transparency. In April 2015 the Clydesdale was fined £20.7 million the largest of its type imposed by the Financial Conduct Authority for the mis-selling of PPI insurance. National Australia Bank confirmed in October 2014 that it planned to exit
1026-606: The Clydesdale brand is the one that has been used in further expansion into the south of England ( Northern Bank was sold to Danske Bank of Denmark along with its operations in the Republic of Ireland, the National Irish Bank ). At the same time 40 branches were closed, a reduction of a fifth of the Yorkshire Bank network. In 2006 underlying profit rose 16.7 per cent to £454 million compared with
1080-623: The LSE and the Australian Securities Exchange on 3 February 2016, and began trading unconditionally from 8 February 2016. In June 2018 CYBG plc announced it would acquire Virgin Money for £1.7 billion in an all-stock deal. Almost one in six employees were expected to lose their jobs in the takeover, which would result in retail customers being migrated to the Virgin Money brand over three years. In June 2019 CYBG plc announced its plans to consolidate its businesses under
1134-480: The LSE and the Australian Securities Exchange on 3 February, and began trading unconditionally from 8 February. The flotation share price of 180p meant that the National Australia Bank made an estimated loss of £2 billion on the sale and had to make provisions of around £1.7 billion to cover claims for mis-selling of products. In March 2016 CYBG announced the closure of 28 branches as
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#17327725329651188-464: The North of Scotland 161, covering 221 towns between them. Of the eight Scottish banks, Clydesdale had been the third-largest by deposits, the North being the smallest. The merged bank became Scotland's largest in terms of deposits, advances and branches. However, by 1969, mergers elsewhere had reduced the number of Scottish banks to three with Clydesdale now being the smallest. Midland needed to rationalise
1242-520: The North of Scotland Bank in 1923 but the Aberdeen management had fiercely resisted any attempt to merge with Clydesdale. However, the changed competitive market after the Second World War meant that the two banks could not remain separate and in 1950 they were amalgamated to become the Clydesdale and North of Scotland Bank (soon shortened to Clydesdale Bank). Clydesdale had 189 branches and
1296-421: The UK, and was considering a number of options for Yorkshire and Clydesdale Banks, including a possible stock market listing. In October 2015, NAB confirmed it would float Clydesdale Bank and Yorkshire Bank on the London Stock Exchange (LSE) in February 2016 through an initial public offering, with an aim of raising £2 billion. The bank's newly formed holding company CYBG plc began conditional trading on
1350-438: The Virgin Money brand. B and Yorkshire Bank, which exist as trading divisions of Clydesdale Bank plc, would begin to use the Virgin Money name in early 2020 and Clydesdale Bank to use the new name between late 2020 and early 2021. In September 2019 Yorkshire Bank confirmed it would be leaving its Leeds headquarters, with two hundred employees being relocated to the bank's flagship branch on Briggate. In preparation for rebranding,
1404-421: The West Riding of Yorkshire Penny Savings Bank. The Yorkshire Bank was different from other savings banks. At the bottom of the savings chain stood the penny banks, doing what their name implied: accepting very small sums from the poorest local people. As their funds increased, they would be deposited with the trustee savings banks. The relationship between the penny banks and the savings banks could be close, with
1458-660: The Yorkshire Penny Bank. In 1865, pressure of business in the Leeds branches had encouraged the Central Office to open a branch on its premises; unlike all the other branches, this opened daily. It was immediately successful: after one year, deposits were £2,000 and by 1870 they had risen to £25,000. Once the Bank had been registered, it used the Central Office branch as a model for the future branch structure. Gradually, additional daily branches were opened, starting with Bradford (1872), Halifax (1876) and Sheffield (1878). At
1512-636: The acquisition of the Edinburgh and Glasgow Bank , which had been weakened by the same economic disturbances. The Edinburgh & Leith Bank, as it was originally, had been formed in 1838 "for the benefit of the 'industrious middle classes'" and it had bought the Dumfries -based Southern Bank of Scotland in 1842 and the Glasgow Joint Stock Bank in 1844, the latter leading to the change of name to Edinburgh & Glasgow Bank. Poor lending in
1566-403: The bank's name changed to Yorkshire Bank Limited . During the 1970s the bank became one of the first to offer fee free banking whilst in credit, a move that took bigger rivals a decade to follow. In 1982, it adopted public limited company status. During the miners' strike from 1984 to 1985, the bank offered miners who were mortgage holders a deferment, allowing them to postpone payments for
1620-724: The duration of the dispute. The strike took place in the bank's heartland and many miners were customers, having been encouraged by the National Coal Board to have their pay mandated to a bank account. In 1990, the National Australia Bank Group acquired the bank from the consortium of owning banks which, after mergers and acquisitions, were the National Westminster Bank (holders of 40%), Barclays Bank (32%), Lloyds Bank (20%), and Royal Bank of Scotland (8%). The price paid
1674-446: The enlarged Clydesdale but faced resistance. Midland also needed additional capital and its solution to both challenges was to sell Clydesdale (along with Midland's Irish subsidiaries) to National Australia Bank in 1987. In 1989 National Australia Bank bought the Clydesdale bank for £420 million. Fred Goodwin , an accountant working for Touche Ross, worked on the acquisition. In 1995 Goodwin, with little direct banking experience,
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1728-682: The existing Virgin Money plc was merged into the existing Clydesdale Bank plc on 21 October 2019. Clydesdale Bank plc Clydesdale Bank plc is a retail and commercial bank based in Scotland and now owned by Virgin Money UK . It was formed in Glasgow , Scotland, in 1838 and since 2019 mainly trades as Virgin Money . With its international growth in commercial and industrial clients, including Sir Robert McAlpine & Sons, and their extensive credit requirements it sought investment by
1782-408: The family woollen firm of James Akroyd & Son, magistrate and Member of Parliament . His philanthropic work led him to the importance of savings for the working class, much as the founders of the savings banks and early penny banks had done decades before. His original intention was to establish both a provident society and a penny bank within the same institution. In May 1856, Akroyd circulated
1836-595: The first Scottish bank to produce a printed balance sheet, and it showed assets of £2.7 million and net profits of £70,000. The public disclosure of its strength stood it in good stead, for only months later the Western Bank of Scotland closed its doors, followed the next day by the first closure of the City of Glasgow Bank . Clydesdale gained not only customers but 13 branches from the Western. A few months later came
1890-410: The formation of the bank was James Lumsden , a stationer by business, a councillor, police commissioner and, later, Lord Provost of Glasgow . Another member of the founding committee, Henry Brock, became the Bank's first manager. Brock came of a merchant family, was an accountant and one of the founders of the Glasgow Savings Bank. Despite the declaration in the advertisement, in the year after formation
1944-479: The last Scottish banks to acquire a London office (1877). In 1878, the City of Glasgow Bank failed for the second time, leading again to an increase in Clydesdale's deposits and the acquisition of nine of the Glasgow branches. The scale of the collapse led to further debate on the desirability of limited liability and, following legislation in 1879 (allowing fixed uncalled liability on shares), Clydesdale Bank registered as
1998-408: The late 1920s and early 1930s a few new branches were opened, and by 1939 deposits had grown to £39 million. However, it proved difficult to open new branches because of complaints from its shareholders that the Yorkshire was competing with their existing business. Helped by inflation, the Bank's deposits rose to £95 million in 1948, the year that Henry Ashworth became general manager. However,
2052-488: The local gentry and industrialists". Akroyd saw the advantage of a central co-ordinating body for penny banks in a wide district; this could have been found in the Trustee Savings Banks, but Akroyd distrusted them. He wanted freedom of investment of the funds, and recognised that they could not grow just from the savings of the poor: the Bank needed small traders also. Considerable time was taken to establish
2106-517: The management remained cautious regarding direct branch expansion. However, in 1865, a committee was formed to look at prospects and 16 branches were opened in two years. In 1874 the Clydesdale went south of the border and opened three branches in Cumberland but this was seen as following existing trade rather than making a specific attempt to enter the English market. Indeed, Clydesdale was one of
2160-587: The organisation. A key appointment in 1858 was of Peter Bent as accountant, later to become the Bank's first general manager. Finally, in May 1859 the Central Office was ready and the Bank registered under the Friendly Society Acts . In the first month of its existence, two branches opened: Dewsbury and Oxenhope ; by the end of the year there were 24 branches, and a year later there were 128, with total deposits of £23.000. These branches opened one evening
2214-656: The other Edinburgh. Before opening for business it acquired the Dundee Commercial Bank to serve as its Dundee office. Difficulties with the two boards working together led to the Edinburgh bank being wound up and the Eastern became an essentially Dundee bank; its acquisition gave Clydesdale its first interests north of the River Tay . Much of the growth in the Bank's network had come from acquisitions and
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2268-426: The other members of the consortium, now down to seven. The clearing bank mergers of 1968 further reduced the number of shareholders down to four: National Westminster , Barclays , Lloyds Bank and Williams & Glyn . The shift in the asset structure continued and by 1970 overdrafts had reached £100, rising to £337 million in 1979, or 54% of assets, a far cry from the 4% of 1952. In its centenary year of 1959,
2322-409: The resultant loss of 1,400 jobs over three years. In July 2013, Yorkshire Bank forgot to renew its domain name , leading to customers being unable to log onto its website for a number of days. Yorkshire Bank blamed individual ISPs saying they had not refreshed their servers. On 2 September 2014 the bank suffered more IT related issues as its systems left customers unable to make or receive payments for
2376-427: The same time, new evening branches continued to be opened and these peaked at 955 in 1894; by then, there were 16 full branches and these more than doubled to 36 by 1900. Also from 1872, cheque books were introduced to encourage small traders to become customers and "to dispel the common view that the Bank existed only for the small savings of children and the poorer classes". Despite that encouragement to small traders,
2430-426: Was adopted in 1959. The Bank's model was unique in that it directly owned an extensive network of penny banks, remitting funds into a Central Office. By the late nineteenth century, it was larger than any of the Trustee Savings Banks. However, the Bank faced a potential withdrawal of savings in 1911 and was acquired by a consortium of clearing banks. The Bank was acquired by National Australia Bank (NAB) in 1990 and
2484-422: Was always referred to as an affiliate, not a subsidiary. The Glasgow banks suffered more than others in the depressed economy of the inter-war period and from being the largest lender in Scotland in 1920, it fell to fifth place by 1939. Despite this, the Bank continued to open branches, particularly in areas enjoying export growth, and the network increased from 158 in 1919 to 205 in 1939. Midland had also acquired
2538-439: Was announced that CYBG would acquire Virgin Money for £1.7 billion in an all-stock deal, and that the Clydesdale and Yorkshire Bank public brands would be phased out in favour of retaining Virgin's brand, including the renaming of CYBG plc to Virgin Money UK plc. For the time being the marketing name 'Virgin Money' is used by all the operating divisions of the bank, whose headquarters are at 177 Bothwell Street, Glasgow . It
2592-472: Was appointed deputy CEO of the Clydesdale until 1997. During this period Goodwin earned the nickname "Fred the shred" for his aggressive manner in dealing with staff. In September 2013 the bank was fined £8.9 million after miscalculating the mortgage repayments of more than 42,000 customers. In March 2015 the House of Commons Treasury Select Committee said in a conduct report that they had evidence that
2646-400: Was completed on 15 October 2018. In June 2019, CYBG plc announced its plans to consolidate its businesses under the Virgin Money brand. Clydesdale Bank, Yorkshire Bank and B, which exist as trading divisions of Clydesdale Bank plc will begin to use the Virgin Money name in late 2019 with full use planned by early 2021. In preparation for rebranding, the existing Virgin Money plc was merged into
2700-455: Was greater than the bank's shareholders' guarantees, and further Government guarantees were obtained. Despite the Bank's philanthropic origins, the new shareholders required it to be profitable. The operational limits of 10 miles over the border were removed and, in another change, overdrafts were allowed. However, the inter-war years were "not distinguished by any great progress": between 1920 and 1932 deposits stood at around £29 million. In
2754-443: Was merged into another NAB subsidiary, Clydesdale Bank in 2005, continuing to operate as a distinct trading division. In 2016 NAB divested its UK operations as CYBG plc which went on to acquire Virgin Money plc in 2018. Subsequently the Yorkshire Bank name was phased out with all branches rebranded as Virgin Money. Colonel Edward Akroyd is regarded as the initiator of the Bank; he was a prominent Halifax industrialist, head of
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#17327725329652808-477: Was not acceptable to the trustees, who did not want the restrictions it brought: e.g. on the maximum amount an individual investor could deposit (on the face of it, a strange objection from a penny bank). The Bank therefore opted for registration with the Board of Trade , but still had to drop the word "savings" from its name. By 1871, the Bank finally obtained its certificate of registration and duly changed its name to
2862-428: Was to be "chiefly a local bank – having few branches – but correspondents everywhere" though it was conceded that a branch in Edinburgh would be necessary. The Bank duly opened for business in both cities in May 1838. Checkland described the Bank as the creation of "a group of Glasgow businessmen of middling order, liberal radicals…who were active in the government and charities of the city." The driving figure behind
2916-498: Was £1 billion and the bank joined National Australia Bank's other European businesses, Clydesdale Bank (Scotland) and Northern Bank (which operated in both jurisdictions in Ireland). In May 2005, the National Australia Bank announced its intention to merge the Yorkshire Bank with the Clydesdale under one operating licence, in which the former would be a trading name of the latter. Both operate under separate identities although
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