the devil in the detail

WHilst a banks main activity part from exercising its license to collect deposits is to make investments thereby enabling it to repay its creditors (depositors) the NAB's rush to 'services' has now cost the bank 37% of its real functions.

Like the other major Australian banks NAB is now reported to be negotiating with DBS and UOB Singapore, both very very cash rich and fundmanetally sound banks to eat into its register. The reason it needs now to lok at other alternatives now that an interest rate hike is very probable.

It certainly won't collapse when this occurs. But the fall out will maul its share price and force an opening of its books to the regulator. AMP was a worm in the apple it bit.

NABs real banking activities and its investments without its 'fees' like 30% on dishourned cheques or dollars for maintaining accounts and queries by account holders will reduce its bottom line when the rate hike comes.

Sad for all indeed. Its investing activities is in total a paltry 28% of its overall activity portfolio.

Good Luck to the Singaporeans. Time to teach these slugs a lesson with their protectionsim and greed.