In a briefing delivered from the group’s Sydney headquarters on Monday John Stewart, group chief executive, warned that the bank’s UK operation would report lower profits this year.
However he added: “Following an extensive review we have decided to stay and build our banking franchises Clydesdale and Yorkshire because the UK is an attractive market with a positive outlook.”
The bank’s European chief executive, Lynne Peacock, said: “In the past our service delivery has not kept pace with customer trends, our distribution network did not extend into the South East of England, we had no third-party channels and limited direct channel capability.”
NAB has been experimenting with the use of intermediaries via its Clydesdale brand, using only a few selected brokers including Charcol and The Mortgage Times. This programe is now expected to be expanded, though the lender is targeting its services at high net worth individuals.
Ray Boulger, senior technical manager at Charcol, commented: “We were one of the first firms to do business with the Clydesdale brand. Its current range is aimed at attracting wealthy customers and it has set a minimum loan size of between £110,000 and £150,000 as part of this strategy.”
He added: “It is one of the few lenders to offer a fixed rate offset product, which although may be priced a little higher than other offsets at 5.25 per cent will none the less prove good value for some people.”
Christopher May, director of The Mortgage Times Group, said: “It is fantastic news that NAB are about to become more aggressive as it was tempering its proposition initially.”
