The National Australian Bank brushed off claims that it feels under pressure to participate in the consolidation of the banking sector in Britain. A representative for NAB said the bank is comfortable with its position in a foreign country.

The representative responded to a report in the Sunday Times, stating that NAB was considering to sell its British banks – Clydesdale and Yorkshire – after it pulled out its takeover bid for Royal Bank of Scotland Group's 318 British branches.

The newspaper also reported that Spain's Banco Bilbao Vizcaya Argentina may possibly pursue a takeover bid of NAB's British assets that value the business at $3.4 billion.

The report did not cite any sources.

"We wouldn't comment on the speculation but we would reiterate . . . that we are comfortable with the status quo and aren't under any pressure to participate in consolidation," the representative said, without confirming NAB's withdrawal from RBS' British Branches.

However, a source disclosed that NAB has pulled out in buying RBS, leaving Spain's Banco Santander as the leading bidder.

The source also said that NAB backed out after “market conditions made it less bullish.”

An analyst commented that NAB may be looking for an exit strategy in Britain because the market is unattractive.

“I'm not sure that they'll get out out of the UK, though, at a time when valuations are fairly depressed,” the analyst said.