What is 'National Australia Bank (NAB)'

The National Australia Bank (NAB) is one of the major banking entities in Australia. The National Australia Bank (NAB) provides a wide range of financial services, including banking, wealth management and a platform for investment banking. The NAB has locations throughout Australia and New Zealand, as well as the U.K. and the United States. The NAB also has a highly regarded economics research division, which releases the NAB Business Confidence leading indicator every month that is followed by traders worldwide.

BREAKING DOWN 'National Australia Bank (NAB)'

The National Australia Bank is one of the "big four" banks in Australia. As of November 2014, NAB operated 1,590 branches and service centers; and 4,412ATMs across Australia, New Zealand and Asia serving 12.7 million customers.. Clydesdale and Yorkshire banks are its two subsidiaries that operate in the U.K., and it purchased Great Western Bank in the U.S. to gain a foothold in America, as well. NAB also provides a range of investment and insurance services for institutional clients.

Recent History of National Australia Bank

The NAB launched a branchless direct bank in 2016, trading separately as UBank under the leadership of Greg Sutherland and Gerd Schenkel. In January 2009, Cameron Clyne became was named CEO and began a strategy of reputation change, wealth management and a focus on domestic markets.

As part of this strategy, NAB's underweight retail bank embarked on a strategy to increase market share by competing on price and cutting fees. The strategy initially hurt earnings in the division, providing mixed results over the medium term, with cash earnings, market share and customer satisfaction rising, but operating margin and cost-to-income ratio worsening since it began in 2009.

In line with the strategy, NAB attempted to differentiate itself from the other "Big 4" Australian banks in a large national marketing campaign that focused on a theme of "breaking up" with the other banks on Valentine's Day 2011. The Cannes award-winning campaign received both positive and negative reception, while attracting swift competitive responses from other major banks.

In 2009, NAB purchased the mortgage business of Challenger Financial Services for $385 million. The move was intended to boost its market share in the broker channel. The purchase also included the PLAN, Choice, and FAST mortgage aggregation businesses and approximately 17.5 percent in Homeloans, Ltd. In June of that year, NAB paid $660 million for UK insurer Aviva's Australian wealth management businesses, including their Navigator platform. In July, 2009, NAB acquired an 80 percent stake in the private wealth management division of Goldman Sachs JBWere.

  1. National Bank

    In the United States a national bank is a commercial bank, while ...
  2. Reserve Bank of Australia (RBA)

    The Reserve Bank of Australia is Australia's central bank, involved ...
  3. Bank

    A bank is a financial institution licensed as a receiver of deposits. ...
  4. Branch Banking

    Branch banking is engaging in banking activities such as accepting ...
  5. Limited Service Bank

    A limited service bank is a banking business facility that is ...
  6. Bank Run

    A bank run occurs when a large number of customers withdraw their ...
Related Articles
  1. Investing

    The Top 3 ETFs For Investing in Australia

    Learn about some of the best performing exchange-traded funds that investors use to obtain exposure to stock investments in Australia.
  2. Insights

    Is It Time to Invest in Australia?

    Australia a country rich in natural resources and one increasingly gaining attention from investors. Is it time to put some of your international allocation to work in Australia?
  3. Retirement

    Retire in Australia with $200,000 of Savings?

    Maybe. Thanks to a strong U.S. dollar, Australia has become more affordable, at least for Americans.
  4. Investing

    3 Australian Mutual Funds to Avoid

    Learn about several catalysts that may have a negative effect on the Australian economy. Discover three mutual funds to avoid in 2016.
  5. Investing

    3 Best Dividend-Paying Australia Equity ETFs (EWA, QAUS)

    Take a look at three ETFs in the category of Australian equities that offer the highest dividend yields available for ETFs focused on the Australian market.
  6. Investing

    How Does PepsiCo Make Money?

    A look at how snack and beverage behemoth PepsiCo operates and its key regional markets and products.
  7. Investing

    The 3 Largest US-traded Australia ETFs

    Australia’s appeal as an investment destination for prospective investors is incessant. ETFs are undoubtedly an interesting investment option to consider.
  8. Investing

    Bank of America's 4 Most Profitable Lines of Business (BAC)

    Discover how each of Bank of America's primary lines of business impact the company's bottom line and learn about the factors that affect each one.
  9. Investing

    How Bank of America Holds 1/8 of All U.S. Deposits

    Bank of America isn't America's central bank, but given its size and spread, you could be forgiven this misapprehension.
  1. What is the banking sector?

    Learn why the banking sector is a vital industry to our economy, what it does to drive the economic growth and understand ... Read Answer >>
  2. What is the difference between an investment and a retail bank?

    Learn the primary differences between retail banks and investment banks by examining the business activities, type of clients ... Read Answer >>
  3. What are the 9 major financial institutions?

    There are nine major types of financial institutions. Understand the major types of financial institutions that exist and ... Read Answer >>
  4. How does investment banking differ from commercial banking?

    Discover how investment banking differs from commercial banking, the responsibilities of each and how the two can be combined ... Read Answer >>
  5. What factors are the primary drivers of banks' share prices?

    Find out which factors are most important when determining the share price of banks and other lending institutions in the ... Read Answer >>
Trading Center