NAB reinforces acquisitive positioning
Just a day after AMP Limited made clear it was still interested in acquiring AXA Asia Pacific, the National Australia Bank has released a quarterly update to the Australian Securities Exchange (ASX) highlighting strong liquidity and an appetite for growth.
The banking group said that its unaudited cash earnings had increased by 20 per cent during the December quarter to $1.1 billion, and this included a contribution of $33 million from recent acquisitions.
It said that the group’s capital position was also strong, with the Tier 1 ratio increasing to 9.3 per cent from 9 per cent at 30 September last year, and that any capital impact from the proposed acquisition of AXA Asia Pacific would only occur after the transaction had received final court approval.
Looking at its wealth management arms, MLC and NAB Wealth, the banking group said revenue had continued to strengthen in line with the recovery in investment markets and that funds under management had increased due to both market performance and positive net flows, resulting in increased market share for the investments business.
It said the integration of Aviva was progressing well and exceeding expectations, while its strategic alliance with JBWere was now fully operational.
“Adviser retention has been good and total adviser numbers have increased post-acquisition,” the banking group said.
Commenting on the quarterly update, NAB chief executive, Cameron Clyne described it as a “sound result” achieved despite subdued credit growth and heightened competitive pressures.
He said the banking group was continuing to invest in business banking and wealth management in Australia through a combination of organic and inorganic initiatives.
AUTHOR
Mike Taylor
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