NAB drops A$2.3 billion in US departure
(Australia) - Australia's National Australia Bank (NAB) has closed the books on its costly foray into US HomeSide mortgage business through a sale of its remaining stake to Washington Mutual for A$2.3 billion (US$1.3 billion).
A final net loss of approximately A$104 million has as a result been crystallised to cover transaction costs, closing provisions and balance sheet adjustments, with proceeds being used to extend a share buyback programme by a further A$750 million. This comes on top of the A$2.2 billion already written off by NAB on the play.
NAB is retaining A$300 million in Government guaranteed mortgages, the transaction strengthening its capital position through an effective increase in its Tier 1 ratio by 23 basis points, or A$490 million.
The Bank retains its "AA/A-1+" rating from agency Standard and Poors.
NAB is retaining A$300 million in Government guaranteed mortgages, the transaction strengthening its capital position through an effective increase in its Tier 1 ratio by 23 basis points, or A$490 million.
The Bank retains its "AA/A-1+" rating from agency Standard and Poors.
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