NBNK raises £50m through share issue

| August 22, 2010 | 0 Comments

NBNK plans to compete with other High Street banks and has raised £50 million via a share issue.

The institution, set up by two City financial-sector heavyweights, is set to build a significant presence in the UK and is now trading on London’s AIM.

The bank said it will use the funds to buy branches from existing banks and is said to be seeking 600 branches which Lloyds Banking Group is putting up for sale in coming years.

Lloyds is selling the branches under the orders of the European Commission as a punishment of the billions of pounds in state aid that it received by the Government at the height of the financial crisis.

Furthermore, NBNK is said to be eyeing 75 branches from nationalised bank Northern Rock.

The news comes after Metro Bank became Britain’s first new high street lender for more than a century last month.

Furthermore, Virgin Money recently acquired a banking licence, in a move set to change the UK’s banking industry.

Meanwhile, NBNK said it will focus on “traditional, personalised banking services” and board members include former Treasury Committee head Lord McFall and Sir David Walker.

Peter Levene, chairman of Lloyd’s of London, the insurance market, will be chairman of the company.

Commenting, Lord Levene said: “Admission [to Aim] marks the completion of the first stage of our plans. We will now establish a dialogue with a number of sellers of assets which would fit our acquisition profile.”

Like Metro bank, NBNK has pledged to return to core banking values and will offer longer opening hours.

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