Powered by MOMENTUM MEDIA
realestatebusiness logo

Subscribe to our newsletter

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.

Advertisement
Advertisement

“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

Latest News

Discover some of the top news stories impacting the mortgages space in this weekly wrap-up. ...

The financial watchdogs have remained wary of risks to the housing market as cash rate rises flow through to mortgage customers. ...

Australia’s household wealth has reached $14.9 trillion largely due to house price momentum, yet quarterly growth has continued its recent...

VIEW ALL

Join Australia's most informed brokers

Do you know which lenders are providing brokers and their customers with the best service?

Use this monthly data to make informed decisions about which lenders to use. Simply contribute to the survey and we'll send you the results directly to your inbox - completely free!

What is the maximum proportion of income borrowers should use to service a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.