NAB quits competition for RBS branches

Source said Australian lender leaves Banco Santander in race due to concerns on market conditions.

Australia's National Australia Bank Ltd. has pulled out of the race for Royal Bank of Scotland Group PLC's (RBS) 318 U.K. branches, a person familiar with the situation said.

According to the person, market conditions have made the bank less bullish on a bid, estimated at up to GBP2 billion.

Spain's Banco Santander SA (STD) is now the only bank conducting due diligence on the branches.

Peer Banco Bilbao Vizcaya Argentaria SA (BBVA) is also still in the process, but isn't conducting due diligence at the moment, people familiar with the situation said.

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