Bank refuses comment on sale rumour

By PAULA OLIVER and NZPA

The National Bank is refusing to comment on an Australian report that its British owner has put it up for sale.

Citing unnamed senior banking executives, the Australian Financial Review reported yesterday that Lloyds TSB Group was considering selling the National Bank of New Zealand in an effort to cut costs.

Deutsche Bank had been hired to review options for the sale of the business, the report said.

But National Bank spokeswoman Cynthia Brophy yesterday said the story was rumour.

"We've nothing whatever to say. It's just rumours in the market, we never comment on rumours in the market."

After increasing its net after-tax profit to $503 million for the full year to December 31, the National Bank would be likely to draw significant interest from its competitors should it be put up for sale. The AFR reported the bank could be worth $6 billion.

The bank is No 2 in terms of market share and profits and No 1 in terms of customer satisfaction rating.

Speculation yesterday centred on ANZ and ASB as the most highly motivated bidders, based on a Merrill Lynch & Co analysis.

ANZ spokesman Steve Fisher said there was no real evidence that the bank would be sold.

"We're not actively looking at it," he said. "It's not really on anyone's radar screen. But that's not to say that we wouldn't look at it - I'm sure everyone would if the National Bank was ever put up for sale."

Deutsche Bank refused to comment.

Lloyds TSB was instrumental in establishing National in 1872. It moved to full ownership in 1966 and a head office in Wellington was set up in 1978.