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NBNK Investments Drops Bid Interest In NAB's UK Operations-Source
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NAB spokeswoman Meaghan Telford said the bank would inform the market of the outcome of its review of its U.K. operations in May.

NAB has suffered from its U.K. exposure during the financial crisis, which includes 335 branches across northern England and parts of Scotland. NAB's bad debts rose from A$391 million at the end of September 2011 to A$545 million at the end of December, largely because of problems in the UK.

Commonwealth Bank of Australia Ltd. analyst Ben Zucker said softness in the U.K. real estate markets means impairments for the Clydesdale and Yorkshire banks could reach up to 30%, requiring a top up of up to A$767 million.

Restructuring charges covering redundancies and other charges from the U.K. business could also count for between 5% and 10% of the U.K. cost base at up to A$180 million, meaning NAB will have to bear costs of up to A$947 million.

"While we believe the best scenario for NAB would be to sell its UK business, we see little likelihood of a successful sale at this time," he said.


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