National Australia Bank rejects reports of UK pullout

Optimism on Clydesdale operations continues despite distressed British economy and Fitch’s comment that maintenance serves risk.

National Australia Bank has quashed speculation it will quit its British operation after last week dropping out of the auction for 318 Royal Bank of Scotland branches.

Chief financial officer Mark Joiner said NAB remained "optimistic" that it could acquire the Australia and New Zealand businesses of Axa Asia Pacific Holdings, despite the regulator's competition concerns.

NAB's Clydesdale operation in Britain, which operates its own as well as the Yorkshire brand, has 2-3 percent market share in a distressed economy with no immediate prospect of bulking up to a meaningful size.

It has long been a dead weight on the group's performance.

However, in the first public commentary by a senior executive since NAB's withdrawal from the RBS auction, Mr Joiner said the bank would retain its British presence and ride out any recovery.

"With RBS, we decided that given what was on offer, our own situation and our view of the market, we weren't ready to buy," he said.

View the full story in the Australian.