NAB in further capital raising


|
National Australia Bank (NAB) is cashing up again in the wake of its acquisition of the Aviva Wealth Management business, announcing today that it would be raising a further $2 billion via a fully underwritten institutional placement.
News of the capital raising came at the same time as the big banking group provided a June quarter trading update in which it said that its wealth management business had shown a slight increase in gross income relative to the first half.
It said a combination of positive market returns and positive net flows had increased funds under management to $75 billion at June 30, up from $70 billion at March 31.
However, dealing with the reasons for the capital raising, NAB chief executive Cameron Clyne pointed to the opportunities the banking group saw in small to medium-sized business (SME) and institutional sectors.
“This capital raising not only ensures we maintain a strong balance sheet position, but also provides us with the flexibility to support our existing customers, accelerate initiatives to enhance our SME market position and pursue additional organic and strategically aligned inorganic opportunities,” he said.
“For example, earlier in the year we announced our intention to hire between 150 and 200 additional business bankers to take advantage of opportunities to grow our share of high quality SME relationships that offer long-term multi-product potential,” Clyne said.
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.