The strong performance was attributed to improved results in NAB’s investments and insurance businesses, as well as lower operating expenses.
The company also reported that net income rose eight per cent due to improved insurance claims performance, stable lapses and growth in funds under management as a result of strengthening investment markets.
NAB Group chief executive Andrew Thorburn said that he was pleased that the measures the bank had taken to improve NAB Wealth’s performance were working.
“In October 2014 we highlighted that while we remain committed to distributing wealth products, recent regulatory changes had prompted us to evaluate options to improve overall returns for our wealth business,” he said.
At the same time, NAB Wealth received APRA approval for its life insurance arm to enter into a reinsurance arrangement with a major global reinsurer for approximately 21 per cent of its in-force retail advised insurance book.
“The transaction is expected to release approximately $500 million of common equity tier one capital (13 basis points) to the NAB Group,” a NAB statement said.
“This is expected to result in a reduction in NAB Wealth cash earnings of approximately $25 million per annum.”
In other results NAB reported that its cash earnings were up 5.4 per cent to $3.32 billion, an increase of $170 million for the year.
There was an interim dividend of 99 cents per share, fully franked.
