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Encyclopedia > National Australia Bank
National Australia Bank Limited
Type Public limited company (ASX: NAB, LSENAB, NYSENAB, TYO: 8637)
Founded June 23, 1893
Headquarters Flag of Australia Melbourne, Australia
Key people Michael Chaney, Chairman
John Stewart, CEO
Ahmed Fahour, CEO Australia Region
Industry Finance and Insurance
Employees 39,048 [1]
Slogan "We help our customers achieve their aspirations"
Website www.nab.com.au

The National Australia Bank or nab (ASX: NAB, LSENAB, NYSENAB, TYO: 8637) colloquially the National or the NAB. The NAB is part of the NAB Group. It is the largest bank in Australia by assets, and 28th largest in the world. Image File history File links No higher resolution available. ... The initials PLC after a UK or Irish company name indicate that it is a public limited company, a type of limited company whose shares may be offered for sale to the public. ... The Australian Securities Exchange (ASX) is the primary stock exchange in Australia. ... The Source by Greyworld, in the new LSE building Paternoster Square. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Tokyo Stock Exchange ), or TSE, is one of the largest stock exchange markets in the world by monetary volume located in Tokyo, Japan, second only to the New York Stock Exchange. ... Year 1893 (MDCCCXCIII) was a common year starting on Sunday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Tuesday of the 12-day slower Julian calendar). ... Image File history File links This is a lossless scalable vector image. ... This article is about the Australian city; the name may also refer to City of Melbourne or Melbourne city centre. ... This article is about the Australian businessman. ... Chief Executive Officer (CEO) is the job of having the ultimate executive responsibility or authority within an organization or corporation. ... Small TextAhmed Fahour is an Australian of Lebanese descent, and is the Chief Executive Officer of the Australian operations of the National Australia Bank (NAB). ... Finance and Insurance is an industry group that mainly handles the transfer of paper and money, financial assets. These include: Accounting, Asset Management, Electronic Communications Networks, Financial Services Regulatory Agencies, Investment Banking Investment Firms, Investment Funds, Lending, Outsourced Financial Products & Services Marketing, Securities Brokers & Traders, Stock Exchanges, Trade Facilitation, and... This article is about work. ... Look up slogan in Wiktionary, the free dictionary. ... A website (alternatively, Web site or web site) is a collection of Web pages, images, videos and other digital assets that is hosted on one or several Web server(s), usually accessible via the Internet, cell phone or a LAN. A Web page is a document, typically written in HTML... The Australian Securities Exchange (ASX) is the primary stock exchange in Australia. ... The Source by Greyworld, in the new LSE building Paternoster Square. ... The New York Stock Exchange (NYSE), nicknamed the Big Board, is a New York City-based stock exchange. ... The Tokyo Stock Exchange ), or TSE, is one of the largest stock exchange markets in the world by monetary volume located in Tokyo, Japan, second only to the New York Stock Exchange. ...

Contents

Core business

The National Australia Bank Group is organised around three regions: Australia (inc. Asia), UK/Europe and New Zealand. These regional business units include retail banking, business banking, wealth management and nabCapital.


History

NAB as we know it today was formed in 1981 following the merger of National Bank Limited with the Commercial Banking Company of Sydney. This article is about the metropolitan area in Australia. ...


National Bank Limited

In 1858 Alexander Gibb, a Melbourne gentleman, enlisted Andrew Cruickshank, a local merchant and pastoralist, to raise the capital to establish National Bank of Australasia with headquarters in Melbourne. Cruickshank became its first chairman while Gibbs left after being passed over for the position of General Manager. The bank opened its first branch in South Australia the same year. This article is about the Australian city; the name may also refer to City of Melbourne or Melbourne city centre. ... Capital Adelaide Government Constitutional monarchy Governor Marjorie Jackson-Nelson Premier Mike Rann (ALP) Federal representation  - House seats 11  - Senate seats 12 Gross State Product (2004-05)  - Product ($m)  $59,819 (5th)  - Product per capita  $38,838/person (7th) Population (End of September 2006)  - Population  1,558,200 (5th)  - Density  1. ...


Expansion to other Australian states followed, with branches opening in Tasmania (1859), Western Australia (1866), New South Wales (1885) and finally Queensland (1920). Slogan or Nickname: The Apple Isle; Holiday Isle Motto(s): Ubertas et Fidelitas (Fertility and Faithfulness) Other Australian states and territories Capital Hobart Government Constitutional monarchy Governor William Cox Premier Paul Lennon (ALP) Federal representation  - House seats 5  - Senate seats 12 Gross State Product (2004-05)  - Product ($m)  $16,114... Slogan or Nickname: Wildflower State or the Golden State Other Australian states and territories Capital Perth Government Constitutional monarchy Governor Ken Michael Premier Alan Carpenter (ALP) Federal representation  - House seats 15  - Senate seats 12 Gross State Product (2004-05)  - Product ($m)  $100,900 (4th)  - Product per capita  $50,355/person... “NSW” redirects here. ... Slogan or Nickname: Sunshine State, Smart State Motto(s): Audax at Fidelis (Bold but Faithful) Other Australian states and territories Capital Brisbane Government Constitutional monarchy Governor Quentin Bryce Premier Anna Bligh (ALP) Federal representation  - House seats 28  - Senate seats 12 Gross State Product (2004-05)  - Product ($m)  $158,506 (3rd...


An early branch established in Mauritius (1859) closed within a year, but a London branch (1864), established to handle financing and payment for Australian exports of wool, gold and other commodities, and imports to Australia, was more successful. This article is about the capital of England and the United Kingdom. ...


National Bank of Australasia was one of many banks that closed its doors during the banking crisis of 1893. Director John Grice was active in the crisis, from which the bank re-emerged as a public limited company, incorporated on 23 June 1893. Sir John Grice (6 October 1850 – 27 February 1935) was an Australian business man and company director. ... is the 174th day of the year (175th in leap years) in the Gregorian calendar. ... Year 1893 (MDCCCXCIII) was a common year starting on Sunday (link will display the full calendar) of the Gregorian calendar (or a common year starting on Tuesday of the 12-day slower Julian calendar). ...


For the next half century, growth was stimulated by a number of acquisitions:

  • Colonial Bank of Australasia (est. 1856) in 1918, bringing additional branches in Victoria and New South Wales.
  • Bank of Queensland in 1922, with branches in Queensland, New South Wales and Victoria. The Bank of Queensland was itself result of the merger in 1917 of Royal Bank of Queensland (est. 1886) and Bank of North Queensland (est. 1888).
  • Queensland National Bank (est. 1872) in 1948, with branches in Queensland, New South Wales and Victoria.
  • Ballarat Banking Company (est. 1865) in 1955

The bank opened a representative office in Tokyo in 1946, later upgraded to a branch in 1985. The bank’s overseas interest expanded more rapidly in the 1970’s. It opened a branch in Singapore in 1971, and representative offices in Jakarta (1973) and Hong Kong (1974). It took minority interests in merchant banks in these locations at the same time, and in Hong Kong established a 50-50 joint venture merchant bank with Mitsubishi Bank and Trust, but withdrew from these arrangements in 1984. Its first US presence was established in 1977 with a branch and an agency in Los Angeles that it closed in 1993. “VIC” redirects here. ... Minority interest in business is an accounting concept that refers to ownership of a company that is less than 50% of outstanding shares. ...


Commercial Banking Company of Sydney

The Commercial Banking Company of Sydney began operations on 1 November 1834 and in 1848 was incorporated by an Act of the New South Wales Parliament. Thomas Barker (born 1799 London, England, died 1875 Bringelly, New South Wales), a manufacturer, engineer, politician, landowner and philanthropist was a notable director and chairman.


1980-2000 merger and rapid overseas expansion

In 1981, National Bank Limited merged with the Commercial Banking Company of Sydney to form National Australia Bank (NAB).


The expanded financial base of the merged entity triggered significant offshore expansion over ensuing years. Representative offices were established in Beijing (1982), Chicago (branch 1982), Dallas (1983), Seoul (1983, upgraded to a branch in 1990), San Francisco (1984), Kuala Lumpur (1984), Athens (1984, closed 1989), Frankfurt (1985, closed 1992), Atlanta (1986), Bangkok (1986), Taipei (1986 upgraded to branch 1990), *1988: NAB opened a representative office in Shanghai (1988, closed 1990), Houston (1989) and New Delhi (1989). “Peking” redirects here. ... Nickname: Motto: Urbs in Horto (Latin: City in a Garden), I Will Location in the Chicago metro area and Illinois Coordinates: , Country State Counties Cook, DuPage Settled 1770s Incorporated March 4, 1837 Government  - Mayor Richard M. Daley (D) Area  - City  234. ... Dallas redirects here. ... Short name Statistics Location map Map of location of Seoul. ... This page is a candidate for speedy deletion. ... Nickname: Motto: Maju dan makmur (English: Progress and Prosper) Location in Malaysia Coordinates: , Country State Establishment 1857 Granted city status 1974 Government  - Mayor (Datuk Bandar) Datuk Abdul Hakim Borhan From 14 December 2006 Area  - City 243. ... This article is about the capital of Greece. ... This article is about the state capital of Georgia. ... Nickname: Coordinates: , Country Region City seat Xinyi District (信義區) Government  - Mayor Hau Lung-bin (KMT)1 E9 Area  - City 271. ... For other uses, see Shanghai (disambiguation). ... Houston redirects here. ... , This article is about the urban region that is the capital of India. ...


In 1987, NAB bought Clydesdale Bank (Scotland) and Northern Bank (Northern Ireland and Republic of Ireland) from Midland Bank. It rebranded Northern Bank branches in the Republic of Ireland to National Irish Bank and changed both banks' logos from that of the Midland Bank. In 1990, NAB bought Yorkshire Bank (England and Wales). The Clydesdale Bank PLC (Scottish Gaelic: ) is a commercial bank in the United Kingdom, a subsidiary of the nab Group. ... This article is about the country. ... Northern Bank, is a commercial bank in Northern Ireland. ... Northern Ireland (Irish: ) is a part of the United Kingdom lying in the northeast of the island of Ireland, covering 5,459 square miles (14,139 km², about a sixth of the islands total area). ... The Midland Bank (now part of HSBC) opened as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836. ... National Irish Bank (NIB) (Irish: Banc Éireannach Náisiúnta) is a commercial bank in the Republic of Ireland, one of the traditional Big Four. ... Yorkshire Bank is a British regional retail bank, mainly operating in Northern England. ...


Further acquisitions followed - Bank of New Zealand in 1992, which at the time had about a 26% market share in the New Zealand market, and Michigan National Bank (MNB) in 1995. NAB had earlier rationalized its operations in the US and closed its offices in Atlanta, Chicago, Dallas, Houston, and San Francisco in 1991. The Bank of New Zealand (BNZ) is one of New Zealands largest banks. ... Michigan National Bank was established on 31 December 1940, as a consolidation of First National Bank and Trust Company of Grand Rapids, First National Trust and Savings Bank of Port Huron, National Bank of Lansing, Battle Creeks Security National Bank, National Bank of Saginaw and First National Bank of...

Previous National Australia Bank logo
Previous National Australia Bank logo

This period of rapid expansion through acquisition concluded with the purchases in 1997 of HomeSide Lending, a leading US mortgage originator and servicer based in Florida, and most significantly, the acquisition in 2000 of MLC Limited (and related MLC entities) for $4.56bn, one of the biggest mergers in Australian corporate history. National Australia Bank Logo This work is copyrighted. ... National Australia Bank Logo This work is copyrighted. ... Official language(s) English Capital Tallahassee Largest city Jacksonville Largest metro area Miami metropolitan area Area  Ranked 22nd  - Total 65,795[1] sq mi (170,304[1] km²)  - Width 361 miles (582 km)  - Length 447 miles (721 km)  - % water 17. ... MLC is the wealth management division of the National Australia Bank (NAB). ...


NAB encountered a difficult period in the period 2000-2005. In 2000, NAB sold Michigan National Bank to ABN AMRO, then in 2001 sold HomeSide’s operating assets for US$1.9b to Washington Mutual, the largest US savings and loan company, as well as the mortgage unit's loan-servicing technology and operating platform. ABN AMRO (Euronext: AAB, NYSE: ABN) is one of the largest banks in Europe and has operations all over the world. ... “WaMu” redirects here. ...


HomeSide

NAB booked two write-downs associated with HomeSide. First, in July 2001, NAB had a $450 million write down of the value of its capitalized mortgage servicing rights (CMSRs) during the quarter ending June 30, 2001, and was the result of exceptionally high mortgage refinance volumes which lowered the value of the CMSRs, combined with a more challenging capital markets environment in which to hedge interest rate risk. This was followed shortly by a second write-down reported in September totalling $1.75 billion; this second write-down consisted of US$400 million from an incorrect interest rate assumption embedded in the mortgage servicing rights valuation model, US$760 million from changed assumptions in the model flowing from the continued unprecedented uncertainty and turbulence in the mortgage servicing market, and US$590 million from writing off of the goodwill. In total, NAB booked $2.2 billion in losses due to HomeSide.

NAB Headquarters at Melbourne Docklands
NAB Headquarters at Melbourne Docklands

Image File history File linksMetadata Download high resolution version (1094x675, 276 KB) Summary National Australia Bank, Melbourne HQ. Taken by Anthony Agius. ... Image File history File linksMetadata Download high resolution version (1094x675, 276 KB) Summary National Australia Bank, Melbourne HQ. Taken by Anthony Agius. ...

Foreign currency options losses

In 2004, NAB discovered that as a result of unauthorized spot trades on its foreign currency options desk, losses totalling $A360 million had been covered up. Investigations by Price Waterhouse Coopers and the Australian Prudential Regulation Authority highlighted a need for cultural change. The losses were a result of a failed speculative position where the traders falsified profits to trigger bonuses over a number of years. In order to actually generate the reported profits, the traders speculated on the US dollar, betting that it would rise against the Australian dollar and other currencies. This incident led to the resignations of CEO Frank Cicutto and Chairman Charles Allen.[1] In 2006, the two traders most heavily involved in the fictitious trades, David Bullen and Vincent Ficarra, were sentenced to 44 and 28 months jail respectively.[2] PricewaterhouseCoopers (or PwC) is the largest professional services firm in the world. ... The Australian Prudential Regulation Authority (APRA) is the Australian regulator of banks, credit unions, building societies, insurance companies, friendly societies and superannuation funds. ...


Tax evasion and customer overcharging in Ireland

The Irish subsidiary of the bank, National Irish Bank was the subject of a six-year Inquiry carried out by Inspectors appointed by the Irish High Court. They established that National Irish Bank had engaged in overcharging its own customers and tax evasion schemes prior to 1998[3]. Mr Justice Peter Kelly, an Irish High Court judge commented following publication of the Report "The edifice of banking is built on a foundation of trust. On the Inspectors findings there was a breach of trust. The operation was carried out over a period of years in a deliberate fashion"[4]. The Director of Corporate Enforcement subsequently applied to the High Court to have 9 senior managers barred from being an officer of any company[5]. National Irish Bank (NIB) (Irish: Banc Éireannach Náisiúnta) is a commercial bank in the Republic of Ireland, one of the traditional Big Four. ... The Office of the Director of Corporate Enforcement in Ireland was set up by the Irish Government on November 28, 2001 as a consequence of the proceedings and the conclusions of various review groups, courts, tribunals of inquiry and parliamentary committees in recent years. ...


Post 2005

In 2005, NAB announced a cut of 2,000 Australian jobs as part of a global cost-cutting program, with the intention of cutting around 4,200 positions – about 10.5% of its total workforce globally. [6] It began to outsource back office positions offshore, beginning with a pilot with 23 jobs from the accounts payable department in Melbourne going to Bangalore, India in an agreement with Accenture. [7] Later that year, it sold Northern Bank and National Irish Bank to the Danish Danske Bank. Over 200 additional jobs had been sent offshore by 2006.[8] Bangalore (ಬೆಂಗಳೂರು in Kannada) is the capital and largest city of the state of Karnataka in India. ... Accenture (NYSE: ACN, ISIN: BMG1150G1116) is a global management consulting, technology services and outsourcing company. ... Northern Bank, is a commercial bank in Northern Ireland. ... National Irish Bank (NIB) (Irish: Banc Éireannach Náisiúnta) is a commercial bank in the Republic of Ireland, one of the traditional Big Four. ... This article does not cite any references or sources. ...


By 2006, NAB had turned its fortunes around, reporting an industry record $4.3 billion profit and winning two local Bank of the Year awards.


NAB launched a new division STAR Direct & Alliances to develop and operate businesses serving customers through non-branch channels in 2007.


Sponsorship

The National Australia Bank is a prominent supporter of Australian rules football, both at grassroots and elite level. It sponsors Auskick, an initiative to improve young footballers, as well as the NAB Cup (an Australian Football League pre-season competition), the NAB AFL Rising Star award; and the AFL National Draft. Other significant sporting sponsorships include the Socceroos, and the 2006 Commonwealth Games. Support is also given towards community group volunteers around Australia. In recent years, NAB has provided financial support and relief to drought affected farmers. High marking is a key skill and spectacular attribute of Australian rules football Precise field and goal kicking using the oval shaped ball is the key skill in Australian rules football Australian rules football, also known as Australian football, Aussie rules, or simply football or footy is a code of... NAB AFL Auskick logo. ... The NAB Cup is the pre-season/night series Australian rules football competition of the Australian Football League, sponsored by National Australia Bank. ... This article is about the national league in Australian rules football. ... The NAB Rising Star award is given annually to a standout young player in the Australian Football League. ... The AFL Draft is the annual draft of young talent by Australian rules football teams that participate in the main competition of that sport, the Australian Football League. ... First International New Zealand 3 - 1 Australia (Dunedin, New Zealand; June 17, 1922) Largest win Australia 31 - 0 American Samoa (Coffs Harbour, Australia; April 11, 2001) Worst defeat Australia 0 - 8 South Africa (Adelaide, Australia; September 17, 1955) World Cup Appearances 2 (First in 1974) Best result Round 1, 1974... The 2006 Commonwealth Games were held in Melbourne, Australia between March 15 and March 26, 2006. ...


Leadership in Customer Relationship Management

The NAB is recognized as an early adopter and leader in CRM (Customer Relationship Management). It is a large user of the Siebel CRM software and has developed and implemented its "National Leads" analytical CRM system to support its sales force in identifying relevant customer sales & service opportunities. [9][10] Customer relationship management (CRM) is a broad term that covers concepts used by companies to manage their relationships with customers, including the capture, storage and analysis of customer, vendor, partner, and internal process information. ... Siebel is a brand name of Oracle Corporation. ...


In 2006, NAB revamped its CRM system having slipped behind other banks investing in CRM platforms using cutting-edge technology.[11][12]


The NAB has also deployed its National Leads system to New Zealand and United Kingdom. In 2006, NAB was named the winner of the IFS/Cap Gemini Financial Innovation awards for its National Leads system. [13]


References

Year 2004 (MMIV) was a leap year starting on Thursday of the Gregorian calendar. ... is the 211th day of the year (212th in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 300th day of the year (301st in leap years) in the Gregorian calendar. ... Year 2005 (MMV) was a common year starting on Saturday (link displays full calendar) of the Gregorian calendar. ... is the 240th day of the year (241st in leap years) in the Gregorian calendar. ... For information on Wikipedia press releases, see Wikipedia:Press releases. ...

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