NAB may broaden its Irish base

NATIONAL AUSTRALIA BANK has appointed a top banker to run its British operations, increasing prospects of a bid for an Irish bank.

Bank of Ireland was seen as a potential target after Mike Soden became boss just over 12 months ago, given his previous term as one of NAB’s top executives.

In Ireland, NAB already owns Northern Bank and National Irish Bank giving it a presence North and South.

Despite speculation it has held on to National Irish Bank in the Republic, given its modest market share of about 6/7%.

In the past, analysts said it would have to increase its share or sell on. It has done neither to date, raising expectations that it will attempt to broaden its Irish base.

In that context, Bank of Ireland would become the most likely target among the two main banks, said analysts.

But Seamus Murphy of Merrion Stockbrokers said it was premature to link NAB with Bank of Ireland despite the Mike Soden connection.

Meanwhile, in Britain, NAB’s takeover options are seen as Abbey National and Alliance & Leicester.

Ironically, both were targeted by Bank of Ireland in their failed attempts at expansion in the British market.