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Australia's NAB to book $49 mln loss on Great Western stake sale

Published 29/07/2015, 10:47 am
© Reuters.  Australia's NAB to book $49 mln loss on Great Western stake sale
NAB
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SYDNEY, July 29 (Reuters) - National Australia Bank NAB.AX on Wednesday said it had completed its divestment of its stake in U.S. subsidiary Great Western Bancorp GWB.N and would book a A$67 million ($49 million) loss on the sale in its full-year accounts.

The sale of the shares, mainly to institutional and retail investors, will help NAB lift its Tier-I ratio by about 34 basis points, bolstering its position as the most capitalised of Australia's major banks. ID:nL3N10802H

Net proceeds from the full sale were A$1.46 billion, representing a A$396 million loss relative to Great Western's book value, it said.

The latest sale represented 28.5 percent of Great Western's stock. In October last year, it held 72.4 percent. ID:nL3N0SA555

Under CEO Andrew Thorburn, NAB has made withdrawing from offshore businesses a priority as it looked to improve performance and shareholder returns. ID:nL4N0XX5JB

($1 = 1.3622 Australian dollars)

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