subscribe to our newsletter
NAB sells £1.2 billion of high risk mortgages

NAB sells £1.2 billion of high risk mortgages

NAB has announced it will sell an additional £1.2 billion parcel of higher risk loans from its UK Commercial Real Estate (CRE) portfolio to an affiliate of Cerberus Global Investors (Cerberus).

An estimated £127 million of capital will be released for the NAB Group when the transaction is settled.

Following the sale, the balance of the portfolio will be reduced to £836 million, compared to the original balance of £5.6 billion in October 2012 when the run-off portfolio was first established.

The loans being sold are mainly defaulted, watch and high loan-to-value loans, with the sale reducing the higher risk loans in the portfolio by 93 per cent, according to an ASX statement released yesterday.

NAB Group chief executive Andrew Thorburn said NAB had accelerated the run-off of the UK portfolio, with a great majority of the remaining non-performing loans being sold.

“This is an important step forward, effectively bringing closure to one of our legacy positions,” Mr Thorburn said.

“The sale of these higher risk loans in the NAB UK CRE portfolio is another important milestone in our strategy of reducing our low returning legacy assets and sharpening our focus on our core Australian and New Zealand franchises,” he said.

“Pleasingly, the remaining NAB UK CRE loans are largely strong performing loans, and we will look at other options to manage this small remaining portfolio.”

NAB sells £1.2 billion of high risk mortgages
mortgagebusiness logo

Latest News

A newly launched campaign is calling on Australians to write to the Attorneys-General “demanding change” to ensure that bank staff can ...

A community sector and charities specialist is to become the new chief ombudsman and CEO of the newly formed dispute resolutions body, the ...

Submissions are now open for the annual Women in Finance Awards, the prestigious event that aims to highlight the outstanding work of women...

Promoted Stories

podcast

LATEST PODCAST: How the market has changed in the last 25 years, royal commission hearings, broker advocacy

Do you expect access to credit to get harder this year?