Colonial link severed by bank sale

By PAULA OLIVER

The sale of the National Bank closes the book on a British relationship with this country that stretches back more than 100 years.

Lloyds TSB, the notoriously hands-off owner of the National Bank, has had directors in common since the New Zealand institution was founded in 1872.

In 1966, Lloyds bought the National Bank outright, and it was run from London until 1978, when its head office moved to Wellington.

The National Bank owes its black horse logo to Lloyds TSB. The stallion and the advertisements featuring Vivaldi's Four Seasons will continue despite the takeover.

Lloyds TSB spokeswoman Mary Walsh yesterday told the Weekend Herald from London that the bank was proud of its New Zealand operation, "but you have to constantly review the way you structure your business and where you put your focus".

Lloyds TSB felt that the growth outlook for the National Bank, given that it was such an isolated part of the Lloyds TSB portfolio, was limited.

Also, the competitive environment had become even tougher in the second half of this year.

The prospect of a weakening New Zealand dollar meant it was the optimum time to sell.

"Taking those factors into account, as proud as we are of the business, we believe this is the right thing to do."

Lloyds TSB was "very pleased" with the price it achieved.