$2.52 billion NAB profit, but under-performing planners depart
The financial background against which the National Australia Bank (NAB) has overseen recent changes within its wealth division has been laid bare within the big banking group's half-year results, revealing an 8 per cent decline in net operating income and a 1.5 per cent decrease in cash earnings for its wealth business.
The relative position of the bank's wealth management arm was revealed as the NAB reported a 22.8 per cent increase in net profit attributable to owners of $2.52 billion, and as its chief executive Cameron Clyne described the result to 31 March as "solid".
The directors declared an interim dividend of 93 cents per share fully franked, representing an increase of three cents per share over the prior interim dividend.
Clyne made little reference to the changes which have impacted the bank's wealth management operations, but said that in March it had announced "a refreshed strategic agenda to ensure that our structure is attuned to the changing economic and social landscape".
Dealing with the performance of NAB Wealth, the division's head, Andrew Hagger, explained the decrease in cash earnings as having been due to higher insurance claims, an increase in insurance lapses and lower annuities profits.
He said this had been somewhat offset by growth in average funds under management/administration/advice, from stronger client acquisition and returns from investment markets.
Dealing directly with financial planning, Hagger said adviser numbers had increased compared to the same quarter last year "as the business continued to attract advisers from competitors", but did not specify the level of that increase.
His commentary added: "Against September 2012, adviser numbers decreased as under-performing advisers left the business".
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