National Australia Bank said today that it was looking at selling its Irish operations after receiving several offers for the businesses, just a day after the bank's chief executive said such a move was unlikely.
NAB chief executive John Stewart said in a statement that expressions of interest had been received for the Irish operations - National Irish Bank and Northern Bank.
'No decision has been made to sell them,' he said in a statement. 'However, given these expressions of interest, we believe it is in shareholders' interests to explore this option. As such we have commissioned Lazard's to issue an information memorandum and test the market'.
'If we do not receive an offer that reflects the true value and potential of the Irish businesses, we will continue to invest in them and to grow them organically,' Stewart said
'The Irish businesses are excellent businesses with great potential,' he added.
Stewart, who took the top job at NAB earlier this year promising to be more open with shareholders following a rogue trading scandal, played down the prospect of an Irish sell-off at a function in Melbourne yesterday.
'At this point of time it is probably unlikely that we would sell the Irish banks,' he said.
Stewart did not name the potential bidders in his latest statement but media reports have previously speculated HBOS and Royal Bank of Scotland are interested in the Irish operations and Barclays would like to acquire NAB's Irish and British portfolio.
Stewart said NAB was committed to developing its European business, which primarily consists of Clydesdale Bank and Yorkshire Bank in Britain along with the Irish banks.
Clydesdale and Yorkshire service the north of England and Scotland but Stewart said NAB also saw an opportunity to increase its presence in south-east England, the country's financial hub.
* The general secretary of the Irish Bank Officials' Association, Larry Broderick, said the union was 'extremely disappointed' by the NAB announcement. It has arranged meetings with the bank's Irish and European chief executives, and says it is determined to ensure that workers' jobs, terms and conditions of employment are given priority in any talks on the future of the banks.
