The NAB intends to sell off its troubled UK business Clydesdale Bank with an IPO before the end of this calendar year.
This will enable the bank to focus on building a stronger Australian and New Zealand business, the company said in a statement.
“The transaction is a substantial and complex undertaking subject to a range of risks and issues, including shareholder vote, regulatory approvals and board approvals,” the bank said.
The NAB has been raising $5.5 billion in a rights issue as a buffer to meet tougher regulatory requirements for floating Clysdale.
The bank had to raise the capital to meet UK regulatory requirements to meet potential compensation costs to customers who were wrongly sold financial products.
In the demerger and float, NAB aims to sell 80% to current shareholders and the rest to institutions.
Clysdale has 2.8 million retail and business customers and 28 billion pounds in loans.