NAB ponders UK property losses

The sale of all or part of its portfolio of commercial property loans in Britain is receiving fresh scrutiny at National Australia Bank. The bank is presently considering the sale of these loans the Sunday Times reported.

NAB has been weighing up its options concerning Clydesdale Bank for more than a year. Some form of exit from the bank's 28-year old investment in Britain's banking market has been looking likely for a while now.

Last month, Reuters reported that NAB's return on equity on its commercial property book in Britain was "bordering on negative". Clydesdale's ROE on retail banking was then reported to be more than 10 per cent.

This month-old report took the line that NAB was leaning towards a "good bank, bad bank" solution for Clydesdale, an option that would imply selling off the retail arm and keeping the property loans.

The bank has said it plans to update the market as to its strategic review of its UK business when it reports its interim profit, on May 10.