NAB to keep UK holdings, looks to expand into Lloyds
The National Australia Bank has announced it will keep its UK subsidiaries, but is refusing to comment on speculation on if it will make a move on the 632 retail branches of Lloyds’ bank.
European authorities have ordered the sale of the bank’s assets after the bank neared collapse during the global financial crisis.
The purchase of Lloyds’ assets would see the NAB significantly expand its UK presence. Currently the NAB’s folio contains the Clyesdale and Yorkshire bank. The purchase of Lloyds would see the NAB take the 5 per cent stake Lloyds currently has in the British retail banking market.
NAB has engaged in negotiations with Lloyds Bank to restructure the sale of its branches into a more attractive package for the NAB, including asking the British bank to pause large loans in an attempt to reduce the asset gap.
Currently, the sale would see a buyer take control of the $97.2 billion in mortgages and $48 billion in deposits.