National Australia Bank (NAB) has announced a profit drop in its wealth management division MLC, while adviser numbers across the whole group have reached 1401.
MLC’s cash earnings fell $47 million, or 10.7 per cent, to $394 million for the year to September 30, 2008. Cash earnings were $441 million in the prior corresponding period.
However, MLC’s aligned brands, including Garvan Financial Planning, MLC Financial Planning, Apogee Financial Planning and Godfrey Pembroke, recruited 27 new planners in the 12 months to September. NAB Financial Planning added 70 planners in the same period.
Meanwhile, MLC “continued to enhance the customer experience with significant reinvestment in 2008, including the upgrading of MLC’s online capabilities,” an NAB statement said.
“The relaunched mlc.com.au now offers financial advisers genuine straight-through processing, improving online service capability and easier navigation… with 35 per cent of MasterKey applications now received online.”
MLC’s spot funds under management (FUM) slid 14.1 per cent to $94.6 billion for the year to September, reflecting outflows and stock declines.
Overall, NAB reported a 10.7 per cent drop in cash earnings to $3.9 billion, for the year to September 2008, mainly due to $1 billion in losses from risky assets.
NAB’s Tier 1 Capital ratio, a gauge of the bank’s ability to withstand losses, stood at 7.35 per cent, above the regulatory minimum.
NAB plans to solidify its capital by underwriting its next two dividend payments, the statement said.
