Aviva delivers for NAB
Wealth management made only a modest contribution to National Australia Bank’s cash for the for the first quarter of the 2011 financial year of $1.3 billion, but the banking group’s acquisition of Aviva is continuing to pay dividends.
The banking group’s first quarter trading update, delivered to the Australian Securities Exchange today, revealed that the MLC and NAB Wealth businesses had benefited from improving markets. NAB chief executive Cameron Clyne said that while there had also been continued integration benefits flowing from the Aviva acquisition, it had been offset by higher disability claims.
The update revealed that over the year to September, 2010, MLC funds under management excluding Aviva had grown by 8.2 per cent — largely as a result of flows into the MLC corporate superannuation business.
The update said that MLC had also maintained the number one market position in individual risk over the period, while adviser numbers had increased by around 100 with the buy-out of the majority interests in Meritum Financial Group.
The report said MLC had acquired a minority stake in Meritum as part of its Aviva acquisition.
Clyne described the first quarter as having been pleasing, but acknowledged that business banking and personal banking had been the key drivers of group revenue.
Looking at its insurance business, the banking group said premiums in force had increased, along with claims with higher personal disability but lower personal lump sum claims.
AUTHOR
Mike Taylor
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