National Australia Bank (NAB) insists it remains focused on growing its UK business after Moody’s downgraded the ratings on NAB’s Clydesdale Bank due to speculation it would be sold off.
Moody’s downgraded the long-term bank deposit and senior debt rating of Clydesdale Bank to A2 from A1, because of comments from NAB’s senior management suggesting they were open to a sale of the bank in the future.
The ratings agency says the comments raise questions about the long-term commitment of NAB to the UK market.
NAB chief executive Cameron Clyne said the bank’s primary focus in the UK was to keep growing its operations there.
“There has been much speculation in the UK about potential mergers and acquisitions in the past 12 months and how our UK business may fit in with this,” he said in a statement.
“But in all cases, this has been driven by other parties who are considering divesting or acquiring.
“Our shareholders’ interests require that NAB considers all potential options but NAB’s focus on organic growth has not changed, nor has the nature of the group’s support for our UK business.”
The latest speculation about NAB’s presence in the UK came earlier this week with reports a fund had made a STG2 billion ($A3.21 billion) offer for Clydesdale.
Those reports came despite recent comments from NAB’s executive director for finance Mark Joiner that NAB would prefer to grow returns from the businesses before exiting.
NAB owns the Clydesdale and Yorkshire banks in the UK, which together have 2.7 million customers and over 300 retail branches.
NAB shares fell 45 cents, or two per cent, to close at $22.50, while Westpac and ANZ declined less than one per cent and Commonwealth Bank shares gained slightly.