|Industry||Finance and Insurance|
|Headquarters||St Vincent Place, Glasgow, Scotland|
|Key people||Sir Malcolm Williamson (Chairman)
David Thorburn (Chief Executive Officer)
|Revenue||£17, 500 million (2007)|
|Operating income||£194 million (pre annual 2008)|
|Net income||£139 million (pre annual 2008)|
|Employees||c 2, 635 (2012)|
|Parent||National Australia Bank Group|
Clydesdale Bank is a commercial bank in Scotland. Formed in Glasgow in 1838, it is the smallest of the three Scottish banks. Independent until it was purchased by the Midland Bank in 1920, it was sold to its present owners, the National Australia Bank (NAB) in 1987. It shares a banking licence with another British NAB subsidiary, the Yorkshire Bank, although the licence is held by the Clydesdale.
In March 1838, an advertisement appeared for a new joint stock banking company in Glasgow, the Clydesdale Banking Company. It was to be “chiefly a local bank – having few branches – but correspondents everywhere” though it was conceded that a branch in Edinburgh would be necessary. The Bank duly opened for business in both cities in the May. Checkland described the Bank as the creation of “a group of Glasgow businessmen of middling order, liberal radicals…who were active in the government and charities of the city.” 
The driving figure behind the formation of the Bank was James Lumsden, a stationer by business, a councillor, police commissioner and, later, Lord Provost of Glasgow. Another member of the founding committee, Henry Brock, became the Bank’s first manager. Brock came of a merchanting family, was an accountant and one of the founders of the Glasgow Savings Bank. Despite the declaration in the advertisement, in the year after formation the Bank opened three Glasgow branches as well as its first country branches in Campbeltown and Falkirk; a further seven had been opened by 1844. These were supplemented by the acquisition of the Greenock Union Bank; formed in 1840, it had four branches in the Glasgow hinterland.
Following the purchase of the Greenock Union, there was little change in the structure of the Bank and there were still only 13 branches in 1857. In that year, Clydesdale became the first Scottish bank to produce a printed balance sheet, and it showed assets of £2.7m and net profits of £70,000. The public disclosure of its strength stood it in good stead for only months later the Western Bank of Scotland closed its doors, followed the next day by the first closure of the City of Glasgow Bank. Clydesdale gained not only customers but 13 branches from the Western. A few months later came the acquisition of the Edinburgh and Glasgow Bank, which had been weakened by the same economic disturbances. The Edinburgh & Leith Bank, as it was originally, had been formed in 1838 “for the benefit of the `industrious middle classes`” and it had bought the Dumfries-based Southern Bank of Scotland in 1842 and the Glasgow Joint Stock Bank in 1844, the latter leading to the change of name to Edinburgh & Glasgow Bank. Poor lending in the 1845-47 period, particularly to Australia, dogged the Bank for the next ten years and it was eventually taken over by the Clydesdale for a nil consideration; Clydesdale retained 19 of its 27 offices. Five years later, in 1863, Clydesdale acquired the more successful Eastern Bank of Scotland, like Clydesdale, also founded in 1838. Based in Dundee it was two have two separate offices and boards, one in Dundee, the other Edinburgh. Before opening for business it acquired the Dundee Commercial Bank to serve as its Dundee office. Difficulties with the two boards working together led to the Edinburgh bank being wound up and the Eastern became an essentially Dundee bank; its acquisition gave Clydesdale its first interests north of the River Tay.
Much of the growth in the Bank’s network had come from acquisitions and the management remained cautious regarding direct branch expansion. However, in 1865, a committee was formed to look at prospects and 16 branches were opened in two years. In 1874 the Clydesdale went south of the border and opened three branches in Cumberland but this was seen as following existing trade rather than making a specific attempt to enter the English market. Indeed, Clydesdale was one of the last Scottish banks to acquire a London office (1877). In 1878, the City of Glasgow Bank failed for the second time, leading again to an increase in Clydesdale’s deposits and the acquisition of nine of the Glasgow branches. The scale of the collapse led to further debate on desirability of limited liability and, following legislation in 1879 (allowing fixed uncalled liability on shares), Clydesdale Bank registered as a limited liability company in 1882.
Reid described the period 1890-1914 as “the tranquil years”, but that did not preclude steady expansion of the branch network – from 92 to 153.  That was to mark the end of Clydesdale’s independent existence. In 1917 the Bank was approached by London City and Midland (later Midland Bank) and, although initially resisted, Clydesdale Bank was sold in 1920. However, it continued to operate independently and was always referred to as an affiliate, not a subsidiary. The Glasgow banks suffered more than others in the depressed economy of the inter-war period and from being the largest lender in Scotland in 1920, it fell to fifth place by 1939. Despite this, the Bank continued to open branches, particularly in areas enjoying export growth, and the network increased from 158 in 1919 to 205 in 1939.
The Midland Era
Midland had also acquired the North of Scotland Bank in 1923 but the Aberdeen management had fiercely resisted any attempt to merge with Clydesdale. However, the changed competitive market after the Second World War meant that the two banks could not remain separate and in 1950 they were amalgamated to become the Clydesdale and North of Scotland Bank (soon shortened to Clydesdale Bank). Clydesdale had 189 branches and the North of Scotland 161, covering 221 towns between them. Of the eight Scottish banks, Clydesdale had been the third largest by deposits, the North being the smallest. The merged bank became Scotland’s largest in terms of deposits, advances and branches. However, by 1969, mergers elsewhere had reduced the number of Scottish banks to three with Clydesdale now being the smallest. Midland needed to rationalise the enlarged Clydesdale but faced resistance. Midland also needed additional capital and its solution to both challenges was to sell Clydesdale (along with Midland’s Irish subsidiaries) to National Bank of Australia in 1987.
Up until the middle of the nineteenth century, privately owned banks in Great Britain and Ireland were permitted to issue their own banknotes, and money issued by provincial Scottish, English, Welsh and Irish banking companies circulated freely as a means of payment. While the Bank of England eventually gained a monopoly for issuing banknotes in England and Wales, banks in Scotland and Northern Ireland retained the right to issue their own banknotes and continue to do so to this day. In Scotland, Clydesdale Bank, along with The Royal Bank of Scotland and Bank of Scotland, still prints its own banknotes.
|||||£5||Blue||Sir Alexander Fleming||St Kilda|
|||||£10||Yellow-Brown||Robert Burns||Edinburgh Old and New Towns|
|||||£20||Purple||King Robert the Bruce||New Lanark|
|||||£50||Green||Elsie Inglis||The Antonine Wall|
|||||£100||Red||Charles Rennie Mackintosh||Neolithic Orkney|
The previous series of Clydesdale notes each depicted a notable person from Scottish history:
- 5 pound note featuring Robert Burns on the obverse and a vignette of a field mouse from Burns' poem To a Mouse on the reverse
- 10 pound note featuring Mary Slessor on the front and a vignette of a map of Calabar and African missionary scenes on the back
- 20 pound note featuring Robert the Bruce on the front and a vignette of the Bruce on horseback with the Monymusk Reliquary against a background of Stirling Castle on the back
- 50 pound note featuring Adam Smith on the front and a vignette of industry tools against a background of sailing ships on the back
- 100 pound note featuring Lord Kelvin on the front and a vignette of the University of Glasgow on the back
An image of Adam Smith also features on the £20 note issued in 2007 by the Bank of England, granting Smith the unique status of being the only person to feature on banknotes issued by two different British banks, and the first Scot to appear on a Bank of England banknote.
The Clydesdale Bank ceased issuing £1 notes in the late 1980s. These latterly had an image of Robert the Bruce, whilst the contemporaneous £20 notes had an image of Lord Kelvin.
The £10 notes issued from 1971 bore an image of Scottish explorer David Livingstone with palm tree leaves and an illustration of African tribesmen on the back. A later issue showed Livingstone against a background graphic of a map of Livinstone's Zambezi expedition, showing the River Zambezi, Victoria Falls, Lake Nyasa and Blantyre, Malawi; on the reverse, the African figures were replaced with an image of Livingstone's birthplace in Blantyre.
Occasionally the Clydesdale Bank issues special commemorative banknotes to mark particular occasions or to celebrate famous people. These notes are much sought-after by collectors and they rarely remain long in circulation. Examples to date have included:
- a £5 issued in 1996 to commemorate the poetry of Robert Burns. On the front of the notes is an overprint of his poems above the portrait.
- a £10 issued in 1997 to commemorate the work of Mary Slessor. On the back of the note is the map of Calabar and Mary Slessor along with a group of Africans.
- a £20 to the Commonwealth Heads of Government Meeting in Edinburgh, October 1997, showing on the reverse the Edinburgh International Conference Centre where the meeting was held, along with Edinburgh Castle in the background and the new Clydesdale Bank building at Tollcross, Edinburgh
- a £20 note to mark Glasgow's celebrations as UK City of Architecture and Design, featuring a portrait of Glaswegian architect Alexander "Greek" Thomson; on the reverse is an illustration of the Lighthouse building by Charles Rennie Mackintosh and the dome of Thomson's Holmwood House (1999)
- a £20 to mark the 700th anniversary of Robert the Bruce’s coronation, featuring the Coat of Arms used by the Bruce on the front and a narrative commemorating the anniversary on the rear
- a £10 note to mark the bank's sponsorship of the Scottish Commonwealth Games team, depicting the team logo on the front, and on the rear a montage of all the events at the games (2006)
In March 2005, Clydesdale Bank became one of the official partners of the Scottish Commonwealth Games Team, at the 2006 Commonwealth Games in Melbourne, Australia. This sponsorship builds on the relationship formed by its parent, NAB Group, who are one of the Games' main sponsors as well as a key partner with the Australian team, whilst the sister company, Bank of New Zealand, has joined forces to support its national team. The bank also released a series of Ten Pound (£10) notes with a Commonwealth Games related theme for the occasion.
- J M Reid, The History of the Clydesdale Bank 1838-1938 (1938)
- S G Checkland, Scottish Banking a History 1695-1973 (1975)
- Charles Munn, Clydesdale Bank, The First One Hundred & Fifty Years Our Bank (1988)
- "Bank of Scotland 'family tree'". HBOS History. Retrieved 2007-10-08.
- "British Provincial Banknotes". pp. 1–6. Retrieved 2007-10-08.
- [dead link]
- "Current Banknotes : Clydesdale Bank". The Committee of Scottish Clearing Bankers. Retrieved 2008-10-15.
- "Smith replaces Elgar on £20 note". BBC. 2006-10-29. Retrieved 2008-05-14.
- "Clydesdale 10 Pounds, 1982". Ron Wise's Banknoteworld. Retrieved 2008-10-15.
- "Clydesdale 10 Pounds, 1990". Ron Wise's Banknoteworld. Retrieved 2008-10-15.
- "Banknote Design Features : Clydesdale Bank". The Committee of Scottish Clearing Bankers. Archived from the original on 2008-06-30. Retrieved 2008-10-15.
- "Clydesdale Bank Commemorative Notes". Rampant Scotland. Retrieved 2008-10-15.
- Pick 224 Banknote Collection (banknote.ws). Retrieved on 2012-11-09.