NAB says UK market OK
The share price for National Australia Bank has lost almost $10 or 21 per cent from its $45 peak in November. Causing the slide is a belief that its British operations will be hit by a deteriorating housing market but the head of the UK operations, Lynne Peacock, said that the bank is better placed to weather any downturn than its competitors. Ms Peacock said that while conditions in the market were tougher now, house price growth will merely moderate rather than crashing as forecast by some commentators. She said that the bank does not write sub-prime loans and that the average loan-to-value ratio for new loans in 2007 was around 60 per cent.
By The Daily Telegraph