National Australia Bank may be a buyer of select, offshore assets in the United States but probably not in Britain.
In interviews with several newspapers published today Cameron Clyne, managing director of NAB, canvasses strategic and funding issues facing the bank. The interviews are Clyne's first piece of public relations since formally taking over as CEO of the bank from the beginning of the month.
The Age reported that Clyne views offshore expansion as having "some merit" over the medium to long term.
In the United States, where NAB owns the South Dakota-based Great Western Bank, Clyde said, "We are being offered, or have seen offers of, deposit books from the FDIC (Federal Deposit Insurance Corporation). We will continue to look at those and they might be an attractive way to continue our growth."
NAB bought Great Western early in 2007 in line with the view that agribusiness banking is a specialty of the NAB group.
In Britain, NAB is not necessarily a buyer since it's unlikely any select banking assets may be for sale but, for the time being, the bank is taking the line that it is not a seller either. NAB owns Clydesdale Bank in Britain as well as the Yorkshire Bank brand and has been expanding (under the Clydesdale brand) in southern England.
"Having invested a significant amount of time, there's no way there will be a fire sale of a high-quality asset — that's just not on the agenda," Clyne said of the British assets.
Quizzed by
The Australian about the prospect of any (admittedly remote) mergers among the four major banks, Clyne said NAB would benefit from maintaining its position as a "strong" fourth bank in Australia rather than attempting to increase market share to become a "shaky" largest or second-largest institution.
Clyne also cautioned on exaggerating the extent of Australia's economic downturn.
"You can be scare-merchants but the economy is robust and there is probably still 200 basis points to come off interest rates," he said.
"That is not to say I'm optimistic, but I'm not at the point of saying this is a disaster. The downturn may not hit the depths of what has happened previously."