NAB signals expansion in funds management
National Australia Bank chief executive Frank Cicutto has signaled that the group is intent on further expansion in funds management by doubling its contribution to the bank’s profit.
"With the MLC acquisition we now have over 10 per cent of our profits coming from wealth management. Our target is 20 per cent from this area," he says.
"The integration of MLC is on track. As well as cost savings and normal business growth, there are some unique benefits we believe will come from the acquisition."
Cicutto the Australian wealth management market is growing at nearly 30 per cent a year. MLC products such as Plum, AdvantEdge and Your Prosperity are uniquely positioned in the Australian market and NAB expects them to provide excellent growth.
He says MLC's manager of managers investment approach can be readily exported to markets such as the UK.
"We are investigating the potential of launching an investment service in the UK capable of being distributed through multiple channels, including our own branch network," he says.
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