Adverse impacts hurt NAB Wealth Management result
National Australia Bank has found itself running against profit trends, with its wealth management division failing to deliver a significant increase in earnings to contribute to the bank’s $4.39 billion net profit.
The bank’s annual results, released today, revealed that wealth management earnings before significant items declined by 9.7 per cent due to what the bank described as the “adverse impacts of the transitional tax relief in the investments business and adjustments for AIFRS (international financial reporting standards)”.
The bank said that when adjusted for these items, cash earnings growth was 21.3 per cent.
It said that total funds under management and administration increased by 11.8 per cent and annual in force premiums were 11.7 per cent higher than for the same period last year.
The annual results said that cross sales of MLC investment products through the bank were now more than 30 per cent of total MLC sales through planner networks, and that insurance cross sales through the bank had increased by 35 per cent to now stand at 40 per cent of total MLC retail sales.
AUTHOR
Mike Taylor
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