Volatile markets have caused falls in MLC & NAB Wealth's full-year cash earnings, gross income and funds under management (FUM) but are expected to rebound in the current financial year, the company said.
MLC & NAB Wealth's cash earnings before IoRE (investment earnings on shareholders' retained profit) slid 8 per cent to $324 million over the year to 30 September, due in part to a higher effective tax rate, National Australia Bank's wholly owned wealth division said in a statement.
Gross income fell by 0.8 per cent to $1.54 billion as the growth in average FUM was offset by changes in the business mix.
FUM slipped 3 per cent to $112.7 billion as a result of deterioration in financial markets, the wealth manager said.
However, net interest income grew 2 per cent to $1.36 billion due to home lending margin expansion.
Volumes have benefited from strong improvements in retention and a focus on meeting clients' needs, MLC said.
"The subdued financial results for wealth are largely a result of volatile investment markets and an increase in insurance claims," an MLC spokesperson told InvestorDaily.
"We have used the downturn to set ourselves up for success in 2012. We have two new products in the market, MLC Insurance and MLC Wrap, and we are growing our adviser numbers strongly with 309 new advisers joining us in the past 12 months," the spokesperson said.
"With market-leading products, a network of top-quality financial advisers and a business model which is well equipped to respond to the regulatory change underway, we are well positioned for when investment markets start to rebound and discretionary flows return."
