Nab Business Plan

Nab Business Plan-74
The board had “identified considerable value from the application of Home Side’s proven capabilities and systems”.

Recognised as being a leader in technology, NAB also announced plans to develop online banking capabilities in Australia and New Zealand and telephone banking services in the UK and USA.

But overseas acquisitions were far from finished and, in 1998, NAB acquired Home Side, Inc., at the time one of the largest mortgage servicers in the United States.

And following Australia’s win in the Americas Cup in 1983, there was an optimism that Aussies could compete as equals in the global economy. ) the most exciting time to be an Australian businessman/person.

In 1987, the country’s largest bank, the National Australia Bank, headed by the combative executive director of banking and later CEO, Don Argus, sallied forth and bought the Clydesdale Bank, the Northern Bank in Northern Ireland and the National Irish Bank in the Republic of Ireland.

In 2000, NAB disposed of MNC to the large Dutch bank ABN-AMRO posting an accounting gain on the transaction of some US$1 billion, for a small “win”.

But having spectacularly failed to understand the complexities of the US mortgage market, NAB was forced to offload its Homeside operations in 2002 booking a loss of over US billion on the sale.There could not be a better time than 2000 to have a stocktake.What had NAB achieved in its 15-year quest to become the world’s leading financial services company? The banks that had been acquired were peripheral in the markets in which they operated, Scotland, Ireland and Michigan rather than in London or New York.In particular, Clydesdale remained a second tier bank, while its Scottish counterparts, the Royal Bank of Scotland and the Bank of Scotland, were growing manically, of course heading for a spectacular crash in the global financial crisis. The bank’s idea that it could service this small but widely dispersed set of overseas banks from Melbourne was naïve, based on the assumption that a bank account was a bank account and a mortgage was a mortgage everywhere in the world.The bank was about to be disabused of this misconception in a few years, with the disaster that became Homeside.The study of “strategy” usually involves looking at a successful company and trying to determine the reasons for its success.The rationale is that if one is smart enough to discover the reasons then those secrets can be packaged into a recipe which anyone can copy and therefore everyone benefits.This loss more than wiped out the smaller gain on MNC making the expansion overall into the USA a loss-making strategy for the bank.In 2004 under new CEO, John Stewart, NAB agreed to entirely exit its Irish banking operations selling both the Northern Bank, and National Irish Bank to the Danish Danske Bank Group, booking a profit of just over A

But having spectacularly failed to understand the complexities of the US mortgage market, NAB was forced to offload its Homeside operations in 2002 booking a loss of over US$2 billion on the sale.

There could not be a better time than 2000 to have a stocktake.

What had NAB achieved in its 15-year quest to become the world’s leading financial services company? The banks that had been acquired were peripheral in the markets in which they operated, Scotland, Ireland and Michigan rather than in London or New York.

In particular, Clydesdale remained a second tier bank, while its Scottish counterparts, the Royal Bank of Scotland and the Bank of Scotland, were growing manically, of course heading for a spectacular crash in the global financial crisis. The bank’s idea that it could service this small but widely dispersed set of overseas banks from Melbourne was naïve, based on the assumption that a bank account was a bank account and a mortgage was a mortgage everywhere in the world.

The bank was about to be disabused of this misconception in a few years, with the disaster that became Homeside.

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But having spectacularly failed to understand the complexities of the US mortgage market, NAB was forced to offload its Homeside operations in 2002 booking a loss of over US$2 billion on the sale.There could not be a better time than 2000 to have a stocktake.What had NAB achieved in its 15-year quest to become the world’s leading financial services company? The banks that had been acquired were peripheral in the markets in which they operated, Scotland, Ireland and Michigan rather than in London or New York.In particular, Clydesdale remained a second tier bank, while its Scottish counterparts, the Royal Bank of Scotland and the Bank of Scotland, were growing manically, of course heading for a spectacular crash in the global financial crisis. The bank’s idea that it could service this small but widely dispersed set of overseas banks from Melbourne was naïve, based on the assumption that a bank account was a bank account and a mortgage was a mortgage everywhere in the world.The bank was about to be disabused of this misconception in a few years, with the disaster that became Homeside.The study of “strategy” usually involves looking at a successful company and trying to determine the reasons for its success.The rationale is that if one is smart enough to discover the reasons then those secrets can be packaged into a recipe which anyone can copy and therefore everyone benefits.This loss more than wiped out the smaller gain on MNC making the expansion overall into the USA a loss-making strategy for the bank.In 2004 under new CEO, John Stewart, NAB agreed to entirely exit its Irish banking operations selling both the Northern Bank, and National Irish Bank to the Danish Danske Bank Group, booking a profit of just over A$1 billion on the transaction.Sometimes it works, sometimes it doesn’t – there are few Apples or IBMs, but there are many RIMs (makers of Blackberry – whatever happened to that firm? There is an old saying “Success has many fathers but failure is an orphan”.And typically when a strategy fails, such as that of Woolworths and Masters, the immediate reaction is to dump all of the blame upon the unfortunates who happen to be in charge when the bad news is finally given.

billion on the transaction.Sometimes it works, sometimes it doesn’t – there are few Apples or IBMs, but there are many RIMs (makers of Blackberry – whatever happened to that firm? There is an old saying “Success has many fathers but failure is an orphan”.And typically when a strategy fails, such as that of Woolworths and Masters, the immediate reaction is to dump all of the blame upon the unfortunates who happen to be in charge when the bad news is finally given.

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