National Australia Bank
(ASX:NAB) has transferred almost $600 million in capital to its UK subsidiary, Clydesdale Bank, to strengthen its balance sheet.
The transaction will increase the UK bank’s Tier 1 capital ratio by 1.4 per cent.
NAB says the addition of £400 million was a transfer of capital that didn’t change its overall capital ratios.
Clydesdale chief executive David Thorburn says the increase continues his bank’s focus on maintaining a conservative level of liquidity.
In the 2011 financial year the NAB posted an annual net profit of $5.2 billion.
