NAB keen on branch acquisition in UK
(15 March 2011 – UK) The chief executive officer of National Australia Bank’s British arm Lynne Peacock has reportedly upgraded the possible acquisition of 600 branches from Lloyds Banking Group to a top company priority.
NAB already owns Clydesdale and Yorkshire banks in England but has underperformed significantly in recent years at these branches.
Chief Executive Cameron Clyne said last week that he received regular inquiries from investors as to the profitability of the banks, citing that the two banks were a clear drag on NAB’S performance.
Mr Clyne also noted that the company was searching for a solution.
Lloyds itself is being forced to sell the branches as a condition to receive a bailout from the British taxpayers.
Lloyds’ new CEO Antonio Horta-Osorio is speeding up the sale of the business through adding extra items such as 19 percent of the bank's total mortgage book, a 4.6 percent share of the British current account market, and the TSB brand.
The deadline is 2013, but Mr Horta-Osorio surprised investors by initiating the sale this month.
Financial concerns have been raised over NAB’s ability to acquire the branches.
The bank faces a significant funding gap on the Lloyds’ loan book.
Nevertheless NAB would still have to deal with acquiring the assets and liabilities of those with accounts at the Lloyd branches.
NAB also faces competition for the branches from Virgin Money and NBNK.
NAB chief Cameron Clynes said that in regards to its funding problems, the company would proceed carefully.
''We will not do a fire sale just to move it (Clydesdale and Yorkshire banks) off our books, nor will we do a silly acquisition (Lloyd’s branches) to say we've got scale. We've got very clear financial criteria...(to either) sell on attractive terms, or...acquire on attractive terms and in the interim (to) run it well.'
Chief Executive Cameron Clyne said last week that he received regular inquiries from investors as to the profitability of the banks, citing that the two banks were a clear drag on NAB’S performance.
Mr Clyne also noted that the company was searching for a solution.
Lloyds itself is being forced to sell the branches as a condition to receive a bailout from the British taxpayers.
Lloyds’ new CEO Antonio Horta-Osorio is speeding up the sale of the business through adding extra items such as 19 percent of the bank's total mortgage book, a 4.6 percent share of the British current account market, and the TSB brand.
The deadline is 2013, but Mr Horta-Osorio surprised investors by initiating the sale this month.
Financial concerns have been raised over NAB’s ability to acquire the branches.
The bank faces a significant funding gap on the Lloyds’ loan book.
Nevertheless NAB would still have to deal with acquiring the assets and liabilities of those with accounts at the Lloyd branches.
NAB also faces competition for the branches from Virgin Money and NBNK.
NAB chief Cameron Clynes said that in regards to its funding problems, the company would proceed carefully.
''We will not do a fire sale just to move it (Clydesdale and Yorkshire banks) off our books, nor will we do a silly acquisition (Lloyd’s branches) to say we've got scale. We've got very clear financial criteria...(to either) sell on attractive terms, or...acquire on attractive terms and in the interim (to) run it well.'
Subscribe