NAB sets its radar to home
(16 March 2009 – Australia) NAB has set its strategy firmly on the Australian market as their focus in a bid to strengthen the bank and turn around shareholder return.
In the bank’s strategy update, chief executive, Cameron Clyne, said that while the bank’s British assets will be kept, focus will be set on banking to Australian businesses and wealth individuals in particular.
Further, the bank said that the main business priorities are to develop NAB’s Australian franchise by growing the business bank, leveraging recent investments in the retail bank, and continuing to pursue opportunities across the wealth management value chain.
The bank has given particular focus to the business banking arena. NAB outlined their focus as a specialisation of bankers and certain geographies where there is significant opportunity to build market share.
This included what NAB considers an underweight position in the segment of customers with turnover less than $3 million per annum.
In the Retail unit, NAB said that while it has made significant investments in capabilities in the last three years in sales effectiveness and network infrastructure, it has not yet fully leveraged these investments.
Key areas of focus are mass affluent and micro-business, where they consider their brand and capabilities to be well suited.
In the wealth business, NAB sees upside potential for cross-sell of insurance products through their banking franchise, and this will remain a focus. Asset management is also an area for further development.
Despite the definitive Australian organic growth focus, NAB said that it will consider both Australian and International acquisitions, at least on a small scale.
In Australia, the bank will consider acquisitions where they enhance organic strategy, for example, in the areas of distribution and brands.
Internationally, NAB would consider small acquisitions if they de-risk or create greater value in existing positions, for example, deposit books or distribution infrastructure. However, this will only be done if it preserves funding and balance sheet strength, is highly value creating and aligned to the organic strategies of our businesses.
Further, the bank said that the main business priorities are to develop NAB’s Australian franchise by growing the business bank, leveraging recent investments in the retail bank, and continuing to pursue opportunities across the wealth management value chain.
The bank has given particular focus to the business banking arena. NAB outlined their focus as a specialisation of bankers and certain geographies where there is significant opportunity to build market share.
This included what NAB considers an underweight position in the segment of customers with turnover less than $3 million per annum.
In the Retail unit, NAB said that while it has made significant investments in capabilities in the last three years in sales effectiveness and network infrastructure, it has not yet fully leveraged these investments.
Key areas of focus are mass affluent and micro-business, where they consider their brand and capabilities to be well suited.
In the wealth business, NAB sees upside potential for cross-sell of insurance products through their banking franchise, and this will remain a focus. Asset management is also an area for further development.
Despite the definitive Australian organic growth focus, NAB said that it will consider both Australian and International acquisitions, at least on a small scale.
In Australia, the bank will consider acquisitions where they enhance organic strategy, for example, in the areas of distribution and brands.
Internationally, NAB would consider small acquisitions if they de-risk or create greater value in existing positions, for example, deposit books or distribution infrastructure. However, this will only be done if it preserves funding and balance sheet strength, is highly value creating and aligned to the organic strategies of our businesses.
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