National Australia bank subsidiary files for US IPO

Great Western Bancorp Inc, the US subsidiary of National Australia Bank Ltd filed with US regulators on Thursday for an initial public offering. Reuters reported earlier on Thursday that NAB, Australia's No. 4 lender by market value, had tapped Deutsche Bank and bank of America Corp to lead the US IPO of its Sioux Falls, South Dakota-based banking unit. ‘As we continue to strengthen our core Australian and New Zealand franchises, we've made the decision that now is the right time for a staged sale of Great Western Bank,’ NAB Group Chief Executive Andrew Thorburn said. NAB acquired regional lender Great Western in 2008 for just below $1 billion to get more involved in funding agribusiness in the United States, but the operation lacks the scale of larger competitors in the western states where it operates. Now the flagship of the Australian bank's US banking operations, Great Western has about 200 locations in several states including Arizona and Colorado and has assets in excess of $8 billion, according to its website. Australia's four biggest banks— NAB, Australia and New Zealand Banking Group Ltd, Commonwealth Bank of Australia and Westpac Banking Corp — are investor favorites for their lofty dividends and record profits, according to Reuters.