Yorkshire Bank owner to raise cash

YORKSHIRE Bank owner National Australia Bank (NAB) today revealed it is to raise almost £873m to strengthen its balance sheet and “take advantage of organic growth opportunities”.

Australia’s biggest lender plans to sell new shares to raise the cash

Last month, NAB reported a quadrupling in bad debt charges and a 28% drop in second-half cash profit.

Australian banks have escaped the worst of the subprime mortgage fallout that has battered US and European banks, but with growing signs of a global recession, they face increasing bad debts and will have to raise more capital, according to analysts.

NAB said that the share placing has been fully underwritten by Goldman Sachs JBWere, Merrill Lynch and UBS.