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ISCOVER
By: Staff Reporter
Fitch Ratings has warned that NAB’s UK business presents a risk.
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Yesterday Fitch reaffirmed NAB’s ‘AA’ credit rating and said the outlook for the bank remained stable.
However, the ratings agency also said the bank’s UK arm, which includes Clydesdale, presented a level of risk.
“NAB's UK banking presence is unique amongst Australian banks, adding a level of earnings diversity,” a statement by Fitch read.
“While the operations have remained profitable during the global financial crisis, the exposure to the weaker UK economy has been a drag on NAB's operating profit in the financial year ended 30 September 2009 (FY09) and the half year ended 31 March 2010 (H110). Should NAB look to expand its presence in the UK through acquisitions, the group has indicated that any acquisition undertaken would need to add to group profitability immediately,”
NAB has undertaken a number of acquisitions in both the banking and wealth management areas in Australia during the crisis.
