NAB cautious on UK opportunities

A forced shake-up of the UK banking sector could present opportunities for NAB, but CEO Cameron Clyne is cautious about increasing its exposure in the region.

The British government and European Union have agreed to a forced sale of branches of part-nationalised Royal Bank of Scotland and Lloyds Banking Group.

NAB already has foothold in the UK through its ownership of Clydesdale Bank, but according to reports in the SMH, concerns remain over the fragile state of banking markets in Europe.

Speaking to analysts last week following the release of annual results, Clyne said: ''Our appetite for assets offshore has been pretty limited; we haven't seen opportunities for the [British] market because clearly the market has been pretty dysfunctional."

New UK banking rules ensure that acquisitions made do no result in a buyer with more than 15% of any specific market.

More than 300 RBS branches, focused predominantly on SME lending, as well as 185 Lloyds TSB Scotland branches could be up for sale.

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