New chief executive David Duffy must get best price possible for Yorkshire and Clydesdale banks, say analysts

David Duffy
David Duffy
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AUSTRALIAN BANKING analysts have welcomed the appointment of a turnaround expert as the new chief executive of Yorkshire and Clydesdale banks.

David Ellis, of Morningstar, told The Yorkshire Post that the hiring of David Duffy from Allied Irish Banks is “a positive” for National Australia Bank’s UK operations.

He said: “We believe NAB is getting closer to an imminent exit from its troubled British operations and David Duffy’s well-documented turnaround experience and leadership at Allied Irish Bank is a positive for the future owners of Clydesdale and Yorkshire banks.

“Mr Duffy’s priorities are to continue improving underlying operating performance to put the banks in the best possible position to be sold at the highest price possible for NAB.”

Mr Ellis added: “If he is successful he may actually put himself out of a job longer term.”

Mr Duffy has almost 30 years of experience in international banking, including nearly a decade at Goldman Sachs.

In his three years at AIB, Mr Duffy restored the loss-making nationalised lender to profit and steered it through European stress tests.

Mr Duffy earned 425,000 euros last year, a salary capped by the Irish government following its 20bn euro bailout of AIB in 2010. Asked about his package at Yorkshire and Clydesdale, a spokesman said: “In line with normal practice, full details will be disclosed to the market in the CB PLC accounts at the end of the year.”

Yorkshire and Clydesdale confirmed the promotion of Debbie Crosbie to chief operating officer this week. She was appointed an executive director last year.