National Australia Bank (NAB) has reported unaudited cash earnings for the June quarter of $1.4 billion, despite what it describes as challenging operating conditions.
At the same time, its wealth management businesses appeared to remain in positive territory in the face of investor nervousness.
In a June quarter trading update released to the Australian Securities Exchange (ASX) today, the big banking group said net flows into its MLC and NAB Wealth businesses were positive, despite continued weakness in investor confidence and low discretionary flows across the sector.
It said funds under management (FUM) fell marginally during the quarter as weaker markets resulted in negative investment returns, although retail FUM market share was stable.
Commenting in the quarterly update, NAB chief executive Cameron Clyne described “considerable challenges, including Australia’s multi-speed economy, subdued system credit growth, and fragile consumer confidence”.
Clyne also referenced concerns about US economic growth and European sovereign debt.
Discussing MLC and NAB Wealth, he said operating conditions had been challenging, with some weakness in equity markets, and that there had also been a further increase in insurance claims.
