NAB chairman says Clydesdale millstone was most ‘disappointing’ aspect of his reign

After a date was finally announced this week for the flotation of Clydesdale Bank, Michael Chaney, the outgoing chairman of the Glasgow lender’s parent company, has revealed that the time it has taken to offload the debt-laden subsidiary is one of the most “disappointing” parts of his 10-year tenure.

Speaking at National Australia Bank’s annual general meeting, held in Perth, Western Australia, Mr Chaney said jettisoning Clydesdale and Yorkshire banks had been held up by the UK recession and regulatory changes following the global financial crisis.

He said: “This was a significant factor in our shareholder returns not being at the level we would have liked, relative to our competitors.

“However, I am pleased that while the process has been extremely complex, NAB is on track with its demerger and proposed Initial Public Offering (IPO) of our Clydesdale and Yorkshire banks in the UK, to be completed early next year, subject to shareholder approval at the Extraordinary General Meeting on January 27.”

Mr Chaney went on to urge shareholders to vote in favour of the demerger stating it will “allow NAB to focus on investment in its higher-returning core businesses in Australia and New Zealand.”

He added: “As I retire after 10 years as chairman of the National Australia Bank, I am pleased to be able to report your company is in good shape. We have a strong balance sheet, are well-positioned for growth and are close to exiting our low-returning legacy assets.”

Andrew Thorburn, the NAB chief executive, also told the meeting he was looking forward to focusing solely on its core markets.

He said: “Our focus is very much on our Australian and New Zealand franchise. We hold good positions in our home markets and have operated here for well over a century. We know the risks and opportunities in these markets.

“As part of this, we have undertaken a disciplined exit plan, including the sale of Great Western Bank in the US, and Clydesdale Bank in the UK.”

Clydesdale is to begin its stock market flotation in February.