Top performance by MLC, the wealth arm of National Australia Bank (NAB), has underpinned the institution’s boost in net profit by 4.2 per cent to $4.6 billion for the year ended September 30, 2007 compared to the previous corresponding period.
MLC’s revenue increased 14.5 per cent, combined with a 1.3 per cent increase in operating expenses. Cash earnings increased by 30.5 per cent to $402 million.
“The National Australia Bank is in great shape,” NAB group chief executive John Stewart said.
Greater efficiency and productivity slashed the MLC cost to net income ratio to 54.9 per cent in the September half, with the full year cost to net income ratio falling from 64.1 per cent to 56.7 per cent.
MLC’s investment division’s cash earnings increased 42.3 per cent.
This was driven by a 213 per cent increase in net funds flow to $6.4 billion. This combined with favourable investment earnings resulted in a 17.1 per cent increase in funds under management.
Investment sales were up 67 per cent and insurance sales up 15 per cent.
Stewart said financial advisers were stationed in 15 per cent of NAB branches.
“MLC has delivered an outstanding result with a strong platform for continued growth, reflecting the successful execution of its strategy of being truly competitive,” a NAB statement said.
