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NAB on the verge of selling Yorkshire Bank

Melbourne-owned National Australia Bank is reportedly set to sell Yorkshire and Clydesdale banks when it announces full-year results on Thursday.

According to the Yorkshire Post, new chief executive Andrew Thorburn will relay the options for the banks, which will include an IPO so that the bank can focus on its main businesses in Australia and New Zealand.

He has already announced plans to offload the group’s US subsidiary Great Western Bank via an IPO.

The prospect of an IPO raises the potential for a challenger bank in the UK with significant operations in Yorkshire and Scotland.

Analysts say NAB has been “clearing the decks” for a UK exit for some time carrying out extensive restructuring, including the axing of 1,400 jobs, and quarantined £5.6 billionn worth of troublesome commercial real estate loans.

It has invested in new technology platforms and a marketing campaign for its UK operations.

It has also beefed up the UK senior management team with some heavyweight appointments and introduced new corporate governance guidelines, to combat the legacy of mis-selling to households and businesses.

Yorkshire and Clydesdale banks had an estimated book value of around £2.41 billion at the start of the year.

In a third quarter update in August, Yorkshire and Clydesdale banks reported continued strong growth in their mortgage book and a lower charge for bad and doubtful debts.

David Thorburn, the UK CEO, said the company was making “very real progress” in building a better bank for customers.

This was posted in Bdaily's Members' News section by Clare Burnett .