IBOA says it has firm NAB assurances

The Irish Bank Officials Association has said it has received "firm reassurances" regarding National Irish Bank and Northern …

The Irish Bank Officials Association has said it has received "firm reassurances" regarding National Irish Bank and Northern Bank's futures from its parent, National Australia Bank.

In a statement yesterday, IBOA general secretary, Mr Larry Broderick, said NAB's chief executive, Mr John Stewart, has outlined his plans for expanding the bank's operations throughout Europe and the pivotal role that both banks will play in that expansion.

"Mr Stewart was anxious to reassure the IBOA that he had no plans to offload either bank and to the contrary was personally committed to growing the business and envisaged both banks increasing their market share in the coming years," Mr Broderick said after meeting Mr Stewart in Auckland, New Zealand this week.

Mr Stewart, who assumed his role in February, has said in interviews in Australia that he would consider selling NAB's Irish and UK banks if it was in the interests of shareholder value.

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Notwithstanding Mr Stewart's reassurances to the IBOA, media reports in Australia and Asia yesterday reported renewed speculation about a possible sale after the bank delayed a scheduled briefing on its UK and Irish operations. Analysts indicated that they believed a sale was the most likely outcome.

Aspect Huntley research director Mr Peter Warnes said he would not be surprised to see NAB divest itself of the UK banking operation and offset that with writedowns in the second half. "There are a few buyers around in the UK for those assets. NAB doesn't seem to have been able to get it to work because it is a bit disjointed," he said.

Another analyst suggested that NAB might sell its two Irish banks but hang on to the Clydesdale and Yorkshire banks. "There are buyers for both Irish banks but more for the Northern Bank," he said.