The news comes just a few days after HSBC announced 2,200 job losses in the UK, despite the bank posted a profit of over £13bn last year.
News of the cuts at Yorkshire and Clydesdale come after the downgrading of Clydesdale’s rating back in September, and following a loss of £25m in the second half of 2011. This is compared to a profit of £77m for the same period the year before.
The rating downgrading makes it harder for Clydesdale to get funding, while the bank also blame the fall on deteriorating commercial property loans. Both banks are owned by National Australia Bank (NAB), and their chief executive also cites the “significant downgrade in the growth prospects of the UK economy".
An announcement also reveals the Clydesdale will now narrow their focus to consumer and small business lending in Scotland and the north of England. As a result, 29 of the banks’ Financial Solution Centres will be closed, which provide services to wealthier investors.
It is thought that the closures will save around £74m a year.
Clydesdale was purchased by NAB in 1987, and Yorkshire Bank followed suit in 1990. Operations of both companies were merged in 2001, even though the two names were retained.
Formed in 1859, Yorkshire Bank currently has 185 outlets in the UK, while Clydesdale has 152.