MLC has delivered a strong half-year result for National Australia Bank (NAB), driven by bumper investment inflows and insurance sales.
NAB announced yesterday $183 million in wealth management cash earnings at 31 March 2007, an increase of 26.2 per cent compared to the March 2006 half year.
NAB’s overall net profit was up 7.1 per cent to $2.136 billion compared to the previous corresponding period.
The bank’s cash earnings from outgoing operations were 22.8 per cent up to $2.196 billion.
“This is a really good set of results, but we’re not complacent,” NAB chief executive John Stewart said.
The bank attributed a 12.2 per cent increase in MLC’s net income to improved adviser productivity, particularly in the bank channel, NAB Financial Planning, and higher cross selling within the NAB network.
MLC reduced its expenses by increasing efficiency through the natural attrition of staff, and lowering project costs.
It increased funds under administration by 13.1 per cent to $102.4 billion.
“Expense growth was significantly less than the increase in the level of business activity,” Stewart said.
St George-owned Asgard Wealth Solutions and Westpac-owned BT were also major contributors to the record half year results for the banks.
All five major banks have expanded their distribution channels and product offerings and investor confidence remains high, PricewaterhouseCoopers Banking and Capital Markets leader Mike Codling said.
“The compulsory superannuation environment and demographic shifts make their wealth plays an important competitive advantage for the banks,” Codling said.
“Making the most of them will depend on how well they execute their customer-centric strategies.”
