Arab Today, arab today nab in australias largest ever capital raise
Last Updated : GMT 20:45:53
Arab Today, arab today
Arab Today, arab today

NAB in Australia's largest ever capital raise

Arab Today, arab today

Arab Today, arab today NAB in Australia's largest ever capital raise

NAB announced plans to raise Aus$5.5bn in capital and demerge its British banking business
Sydney - AFP

National Australia Bank on Thursday announced the country's biggest ever rights issue to raise Aus$5.5 billion (US$4.4 billion) while detailing plans to demerge its British banking business.

The country's fourth biggest lender outlined its proposals as it posted a net profit of Aus$3.44 billion in the six months to March 31, a 20.4 percent jump from the previous year.

Its cash profit, the industry's preferred measure which strips out volatile items, rose 5.4 percent to Aus$3.32 billion, with its six-monthly dividend remaining at 99 cents.

The numbers came as the bank went into a trading halt ahead of the capital raise, primarily to bolster its balance sheet and provide a buffer to meet tougher regulatory requirements, which will likely see higher reserve capital requirements.

It will offer 194 million new shares, around eight percent of its issued capital, at Aus$28.50 each, a deep 19 percent discount to Wednesday's closing price.

The raising is the biggest ever in Australian corporate history, exceeding the Aus$4.4 billion mining giant Rio Tinto drummed up in 2009.

NAB chief executive Andrew Thorburn said it would help the bank exit its troubled British operations, which include Clydesdale Bank, by the end of the year.

Before it can do that, British regulators have told NAB it needs to shore up Clydesdale's balance sheet to protect it against potential losses linked to past problems, including misconduct issues.

"In relation to exiting our UK banking business, we have been examining a broad range of options including those provided by public markets," said Thorburn.

"It is a priority to exit this business, and we are today announcing our intention to pursue a demerger and IPO of the UK banking business."

- Huge raising -

He added that a strong balance sheet had always been a priority at NAB "which is why we are today announcing that we will be raising $5.5 billion of capital through a rights issue".

"The capital raising facilitates our proposed exit from the UK banking business and positions us ahead of anticipated regulatory changes.

"While there is still much more to be done, we are clear about our priorities and are focused on what needs to be achieved," he added.

The bank will look to demerge 70 to 80 percent of Clydesdale to NAB shareholders while the remaining 20 to 30 percent will be sold through an initial public offering to institutional investors.

The size of the raising came as a surprise to analysts.

"It's a huge raising," IG strategist Evan Lucas said, adding that NAB was unlikely to have trouble getting the money but it would deliver a significant blow to its share price.

"In the longer term it's probably responsible but in the short term it'll be a market headache," he said.

Watermark Funds Management investment analyst Omkar Joshi saw the capital raise as a positive.

"Overall, a solid result by NAB with very pleasing progress on its divestment of non-core businesses as well as being ahead of peers in regards to dealing with higher capital requirements," he said.

Shares in Australia's big banks had already taken a hammering this week on the back of generally weak interim results or trading updates and they were down again Thursday.

Commonwealth Bank, Australia's largest-listed firm, was marginally in the red after shedding nearly six percent the previous day, while Westpac and ANZ were also weaker.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today nab in australias largest ever capital raise Arab Today, arab today nab in australias largest ever capital raise

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today nab in australias largest ever capital raise Arab Today, arab today nab in australias largest ever capital raise

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Sheraton Grand Hotel reveals its deals

GMT 12:20 2017 Monday ,25 September

Sheraton Grand Hotel reveals its deals
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iraq Kurds in historic independence vote

GMT 15:20 2017 Monday ,25 September

Iraq Kurds in historic independence vote
Arab Today, arab today North Korea 'more opaque'

GMT 10:50 2017 Sunday ,24 September

North Korea 'more opaque'
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today 'Lady Beast' fights for girl gamers

GMT 10:27 2017 Sunday ,24 September

'Lady Beast' fights for girl gamers
Arab Today, arab today Conditions growing dire    

GMT 09:22 2017 Monday ,25 September

Conditions growing dire    
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Chevrolet's first 9-speed auto debuts

GMT 18:58 2017 Monday ,25 September

Chevrolet's first 9-speed auto debuts
Arab Today, arab today Third generation adds more power

GMT 13:40 2017 Sunday ,24 September

Third generation adds more power
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Psychologists help Mexico deal

GMT 05:05 2017 Sunday ,24 September

Psychologists help Mexico deal

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 12:02 2017 Sunday ,24 September

Harry visits mental health hospital

GMT 11:11 2017 Sunday ,24 September

The dark side of new tourism hope

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday