UK the key to Aussie bank's future

NEW National Australia Bank boss John Stewart plans to accelerate its UK expansion and hinted he was prepared to spend more to grow market share in the wealthy South East.

The former Halifax and Barclays executive who joined NAB just five months ago, took the reins at Australia's biggest bank on Monday after a A$360m (£150m) foreign exchange scandal claimed the scalp of Frank Cicutto.

Edinburgh-born Stewart has spent his first three days attempting to restore investor confidence with a series of one-to-one briefings with analysts and fund managers.

'The emphasis is still on the UK and his and the bank's ability to generate sustainable profit growth from the UK,' said William Ammentorp, an analyst at Macquarie Equities.

Analysts said that in his briefings Stewart emphasised a commitment to organic growth and improving earnings per share, although he was not specific about his management agenda.

Some added that extra funds were likely to be thrown at the UK this year and that there was a plan for a single-branded small business lending strategy focused on the South East.

NAB controls Clydesdale and Yorkshire Banks, and two banks in Ireland. Their management had been Stewart's chief responsibility.

The open approach to the investment community appears to have paid off after Goldman Sachs JBWere and UBS upgraded their NAB recommendations.