Clydesdale boss in Australia

Brexit volatility down to ‘hysteria’ Duffy tells investors

David DuffyClydesdale Bank chief executive David Duffy has warned investors in Australia that a vote in favour of Brexit would spark more volatility.

However, Mr Duffy moved to calm the nerves of its 400,000 retail shareholders in the country by assuring them it would have a “limited impact” on the bank’s financial performance.

The bank was spun off from National Australia Bank earlier this year, but its shareholders retain 75% of its shares. It is dual-listed in London and Sydney.

Clydesdale stock has been volatile in recent days as investors fret about Britain voting to leave the European Union.

The shares have fallen in Sydney by 10% from their peak last month, though they are up 30% since the flotation in February.

Mr Duffy told Australian newspaper BusinessDay that volatility on the markets was partly fuelled by “hysteria” and he believed Britain would remain part of Europe.

Even if Brexit did occur, he said it would not be “material” for the lender, which is focused on domestic mortgage and small to medium business lending.

“From our perspective, it doesn’t affect the performance of the bank and what would drive that,” he told the paper.

He added that the bank would be reining in costs and seeking to raise returns before paying shareholders a dividend next year.




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