NAB sets aside further £500m for UK redress

Additionally, in relation to interest rate hedging products, 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.

NAB said that the provisions form part of the previously announced £1.7 billion conduct mitigation package for Clydesdale and Yorkshire Bank.

NAB’s intention to exit the UK Banking business was first signalled in October 2014 following a fall of nearly 10% in full-year profits, largely due to provisions relating to a misconduct over insurance policies.

In April, the FCA fined Clydesdale Bank an additional £20,678,300 for "serious failings in its Payment Protection Insurance complaint handling processes" between May 2011 and July 2013 - the largest ever fine imposed by the FCA at the time for failings relating to PPI.

In its half year statement, NAB said that substantial progress has been made on its intention to pursue a demerger and IPO of Clydesdale Bank, and will provide the market with a detailed update of the proposed transaction in its 2015 Full Year results.