NAB brings home the bacon with Irish banks sale
(20 December 2004 – Australia/Ireland) National Australia Bank has reached a deal with Denmark’s Danske Bank to sell its Irish businesses for roughly A$2.5 billion.
NAB said the sale of Belfast based Northern Bank and Dublin based National Irish Bank should result in a A$1.1 billion profit.
NAB chief executive John Stewart said the sale of the Irish banks to Danske was an excellent outcome for the bank.
"We have achieved an attractive price for these banks, generating a significant profit and strengthening our capital base," he said.
Stewart said offloading the Irish banks meant NAB could now focus its energy on growing its operations in the north of England.
"We are committed to retaining and growing these businesses and we are making good early progress on some key strategic projects, including expansion into south east England with our financial solutions centres, the ongoing integration of our banking operations and a revamp of our product range," he said.
Stewart said NAB would provide more details on its plans for growth in the UK in February.
The bank also said it would decide how best to use the proceeds from the sale of the Irish banks when there was greater clarity on issues that could impact the bank’s bottom line.
These include restructuring charges over the first half of 2005, removal of additional capital requirements by APRA and the impact of new international accounting standards.
NAB chief executive John Stewart said the sale of the Irish banks to Danske was an excellent outcome for the bank.
"We have achieved an attractive price for these banks, generating a significant profit and strengthening our capital base," he said.
Stewart said offloading the Irish banks meant NAB could now focus its energy on growing its operations in the north of England.
"We are committed to retaining and growing these businesses and we are making good early progress on some key strategic projects, including expansion into south east England with our financial solutions centres, the ongoing integration of our banking operations and a revamp of our product range," he said.
Stewart said NAB would provide more details on its plans for growth in the UK in February.
The bank also said it would decide how best to use the proceeds from the sale of the Irish banks when there was greater clarity on issues that could impact the bank’s bottom line.
These include restructuring charges over the first half of 2005, removal of additional capital requirements by APRA and the impact of new international accounting standards.
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