Support from the floor at NAB in 2000
January 11, 2008
This story by Bruce Brammall appeared in the Herald Sun the day after the National Australia Bank AGM on December 14, 2000.
National Australia Bank chiefs are confident of another record profit despite the slowing world economy. Chairman Mark Rayner told yesterday's marathon annual meeting in Melbourne first half profits were ``running above plan''.
But it will be a ``testing'' year, as the bank has slashed its own economic growth forecasts for its major markets, including Australia, New Zealand, the UK and US.
Yesterday's often lively four-hour meeting was told the board still feared a foreign takeover because of the fragile Australian dollar, now hovering around US54c.
The bank's preference, however, was to make its own UK acquisitions and possibly gain dual listing in the UK through a friendly merger, chief executive Frank Cicutto said.
Mr Cicutto said the bank was constantly talking to possible partners.
``But we don't comment on who we talk to or don't talk to,'' he said.
The NAB already owns several major UK banks, including the Yorkshire and the Clydesdale. The NAB recently announced its eighth consecutive record profit of $3.4 billion. Last month it also announced the sale of its major US asset, the Michigan National Bank, to ABN Amro for $5.3 billion, making a profit of $2.1 billion.
At the time it said it would use the money for further acquisitions in the UK.
Also during the meeting:
* Shareholder activist Stephen Mayne was given a surprise five minutes on the podium to shore up support for his board nomination.
* The Australian Shareholders Association opposed director Geoff Tomlinson's renomination because of his many other board appointments.
* Shareholders heard NAB will no longer report quarterly, but on the half-year and annual basis, and discovered new initiatives to fight bank bashing will be launched next month.
Mr Mayne's tilt at the board was never a serious threat, despite the backing of the ASA and substantial vocal support from shareholders at the meeting. Despite hoping for around 20 per cent of the roughly 400 million votes, he received nearly 32 million votes, or about 8 per cent.
Mr Tomlinson and three other board members were comfortably re-elected.
Mr Rayner said the community's unhappiness with banks was at an all-time high.
``The bottom line is that many people in the community feel we have not done enough,'' he said.
Mr Cicutto also said he concurred, saying that he would use his final few months as head of the Australian Bankers Association to try to fix the public's poor perception. He said the low public standing of banks ``is a problem for us as a whole''.
He said a promotional push would include more concessions for the elderly and disabled.
Mr Rayner said the board expected growth to slow in the US to around 2.75 per cent in 2001 from around five per cent this year. The UK would also slow to 2.75 per cent and Japan would stay at around two per cent.
Australia would fall to three per cent from 4.5 per cent and New Zealand would ``slow considerably'' to two per cent.
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