Clydesdale Bank and Yorkshire Bank are set to be sold off by the National Australia Bank as the Melbourne-based financial institution determines the policy to leave the United Kingdom as soon as it declares the year-end results next Thursday.
The choices will be dictated by the new Chief Executive, Andrew Thorburn, and will undoubtedly include a primary public offer.
However, it is not likely that he gives a thorough timetable at such an early point, considering the current instability in markets (which is the actual reason Aldermore and Virgin Money postponed IPOs). Moreover, Mr. Thorburn desires to concentrate on the core business of the National Australia Bank in New Zealand and Australia. The plan to rid the institution’s US subsidiary Great Western Bank has already been declared by him.
Andrew Thorburn, who recently replaced Cameron Clyne in August 2014, has been described as “a fast-moving guy” and an “action man”.
The idea of IPO actually increases the probability for a well-built, impartial bank within the Britain, which will operate significantly in Scotland and Yorkshire. Absence of healthy competition among the banks has long been a hurdle to growth in this sector and it has also been notified by the Government multiple times.
National Australia Bank has very recently spent a lot to empower the technology platforms and to start a marketing campaign for its operation in Britain. The financial institution has also performed a profound reformation exercise, including the dismissing of more than 1,000 employees. It has also improved the UK higher administration team with some strong appointments and established fresh corporate governance guiding principles.