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Banking industry

National Australia Bank Seeks to Regain Momentum After Currency Crisis

Strategic Insights

— 2 min read

National Australia Bank (NAB) has overhauled key divisions since last year's $360 million foreign exchange currency crisis, with the aim of improving deal flow and encouraging cross-selling. The bank's general manager for corporate banking, Paul Orton, attributed three recent major deals to NAB's growing confidence in its capabilities to lead large transactions. These deals include the sole underwriting of Patrick Corp's takeover bid for Virgin Blue and the $2 billion acquisition by CLP of Singapore Power's Australian merchant energy business.

Key Takeaways:

  • The bank has maintained its business lending share for the past nine months, suggesting that customer retention policies following the trading losses have been effective.
  • Transactional banking is a key product for selling to large companies, as it focuses on their core corporate needs and provides insights for other leads and opportunities.
  • NAB has an "attractive Australian customer base", according to Citigroup, but the bank's restructuring efforts may take longer than expected to have a significant impact.
  • The bank is committed to making amends for lost opportunities, with Mr. Orton stating that there has been a renewed confidence in the bank's capabilities to lead large transactions.
  • NAB has a large pipe of future deals, but the bank cannot discuss these transactions until they are completed.
  • The bank has overhauled key divisions to break down barriers and improve deal flow, with a focus on transactional banking to sell to large companies.
  • The Finance Sector Union believes that up to 600 jobs in a range of back-office and processing areas will be cut as the bank moves to outsource or restructure their roles, while analysts speculate that up to 2000 jobs could go.

Statistics:

  • NAB has maintained its business lending share for the past nine months.
  • The bank has overhauled key divisions to break down barriers and improve deal flow.
  • The recent deals involve:

+ Patrick Corp's takeover bid for Virgin Blue

+ The $2 billion acquisition by CLP of Singapore Power's Australian merchant energy business

  • The bank has an "attractive Australian customer base", according to Citigroup.
  • Up to 600 jobs in a range of back-office and processing areas may be cut as the bank moves to outsource or restructure their roles.
  • Up to 2000 jobs may be cut, according to analysts.

Sources:

  • "NAB's ORTRANIATION GAINS MOMENTUM AFGHER CURRENCY CRISIS"
  • "Finance Sector Union believes up to 600 jobs will be cut as NAB restructures" by BRITISH NEWSPAPER
  • "NAB CAUTIONED OVER JOBS CUTS" by Australian Financial Review
  • "Citigroup says NAB has 'attractive Australian customer base'" by BRITISH NEWSPAPER

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