(2 November 2012 – Australia) Problems in the United Kingdom have underscored National Australia Bank (NAB)’s 22 percent fall in full-year profit to A$4.08 billion, however chief executive Cameron Clyne has ruled out a fire sale of the banks UK business.Centred on the Glasgow-based Clydesdale Bank, Clyne said there were no quick fixes for the business, which was struggling to break out of recession.
Clydesdale reported a A$213 million loss for the year, citing restructuring charges as the largest contributor to the loss.
‘The UK remains our biggest challenge. While data last week suggests the UK ended the recession during the September quarter, we remain very cautious on the outlook,” Clyne said.
”Unfortunately there is no quick-fix solution in the UK, and believe me when I say we’ve been looking. The restructure we announced to the UK in April was the right response and will take time before that business will generate acceptable returns,” he said.
In the medium term, while the bank catches up to the British economy there will be expected losses, NAB will need to ride it out before the business turns its luck around.