National Australia Bank (NAB), Australia's top bank, could be looking at selling its British banks amid investor unhappiness about lower returns from the businesses, the UK's Sunday Times newspaper said on its Website.

Without giving a source for its information, the paper said NAB had launched a review of all its businesses, including the Clydesdale and Yorkshire UK operations, which could lead to a sale.

A NAB spokeswoman had no comment on the report.

UK banks have been hard hit by the global credit crunch, which is sending the British economy spinning into recession. Prime Minister Gordon Brown said on Sunday that the government was not considering a second bailout of banks after its $53 billion rescue package in October.

Banks in Australia have not been hit as hard, but are feeling the effects of a slowing economy at home.

NAB quadrupled its provision for stressed loans in October to A$2.5 billion ($1.78 billion), and it raised A$3 billion in a share placement in November, ahead of big equity raisings by rivals Westpac Banking and Commonwealth Bank of Australia. 

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NAB Chief Executive Cameron Clyne said in a statement last month he would combine the roles of group chief executive and Australian operations chief, but the move would not affect its overseas operations.

"This does not lessen our focus on our offshore operations such as the Bank of New Zealand, Clydesdale and Yorkshire banks, as these operations have very strong, stable local management teams, independent boards and strong local regulators," the statement said.

Clyne took over as head of the bank from John Stewart on Jan. 1.

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