NAB set to cut 1,400 jobs in UK National Australia Bank is to cut 1,400 jobs in the UK and book almost £500m in costs and provisions as it looks to refocus its Yorkshire and Clydesdale banking operations. Unveiling the results of its UK banking strategic review, Cameron Clyne, chief executive, said the decision to close almost half of its financial solutions centres and take a further provision against commercial real estate loans reflected tough economic conditions. "The action we are taking is needed to adapt to this current economic environment in the UK, and to reposition the UK banking business to improve returns for the group over the medium term," he said. Mr Clyne said retail banking in the UK continued to deliver reasonable returns and despite challenging market conditions it had achieved growth in deposits and mortgages. These changes will refocus UK banking on its retail and small business-oriented franchise in Scotland and northern England, while substantially reducing costs, improving the balance sheet structure of UK banking and reducing the risk appetite for business banking in the UK. NAB will take £195m in restructuring costs and a charge of £150m against bad and doubtful debts in its UK commercial real estate loans (CRE) portfolio. In addition NAB will also take a charge of £120m to cover an increase in payment protection insurance claims and a non-cash £141m goodwill writedown. NAB said it would move the majority of its UK CRE loans, worth about £6bn, to Australia where they will be transferred into a separate portfolio and wound down. This restructure will improve Clydesdale Bank's balance sheet structure, reducing the reliance on wholesale funding, which has become more expensive due to Clydesdale Bank's credit rating downgrades, and moving to a more deposit funded base. NAB said: "UK Banking's risk appetite will be modified and will no longer accommodate financing of property development or property investment, where the underlying purpose is to generate rental income and capital gains."