MLC key to outstanding result
The performance of National Australia Bank’s (NAB’s) wealth management division, MLC, has proved a key driver in the bank’s $4.4 billion record profit reported today.
The bank said that MLC had delivered an outstanding result with a strong platform for continued growth, reflecting the successful execution of its strategy of being truly competitive.
It said MLC’s strong revenue growth of 14.5 per cent combined with an increase of just 1.3 per cent in operating expenses had driven cash earnings up 30.5 per cent to $402 million.
The bank’s announcement to the Australian Stock Exchange said that MLC’s investment division cash earnings had increased 42.3 per cent and this had been driven by a 213 per cent increase in net fund flows to $6.4 billion and, together with favourable investment earnings, had resulted in a 17.1 per cent increase in funds under management.
Looking over the horizon, NAB chief executive John Stewart said the bank planned to grow its revenue at better than system growth rates in key customer segments, primarily in the areas related to integrated financial solutions, agribusiness and wealth management.
AUTHOR
Mike Taylor
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