NAB (National Australia Bank) exit the UK Property Market

After a 3 month strategic review NAB has revealed plans to leave the UK property lending market. This will result in a loss of 1400 jobs, as it trys to return it two loss making UK banks, Clydsedale & Yorkshire, to profit.

Following the movement of in excess of £6bn of problematic commercial property loans into its group balance sheet, which will be run off over time, NAB has taken the decision to abandon the UK market.

This restructuring won’t come cheap at a cost of some £500m, which is fuelling speculation about its future in the UK. Cameron Clyne , NAB’s UK Chief Executive, hasn’t ruled out a sale. NBNK and Sun Capital have been touted as potential suitors to NABS Uk business.

The majority of the cuts will be in the south of England, where NAB has struggled to gain a foothold.

NAB recorded a cash loss of £25m in the for the 6 months to the end of March.