POWERED BY MOMENTUM MEDIA
Wealth management slows NAB result
National Australia Bank (NAB) has reported a 9.4 per cent fall in cash earnings for the half-year to March, with its wealth management division, MLC, reporting a 28.2 per cent decline in cash earnings to $158 million and lower revenue from advice.
In an announcement released on the Australian Securities Exchange today, NAB said its cash earnings had fallen by 9.4 per cent to $2 billion, reflecting tough market conditions that had deteriorated further during the half-year to March.
It said the fall in cash earnings was largely due to increased charges for bad and doubtful debts and higher funding costs. Statutory profit had decreased marginally to $2.7 billion.
Looking at MLC, the banking group said substantially weaker investment markets had been the main factor in the 28.2 per cent decline, with net income falling by 16.6 per cent to $539 million.
The company said cash earnings before interest on retained earnings for MLC investments declined by 45.6 per cent to $68 million, with net income declining by 21.4 per cent to $335 million due to lower management fees as a result of the 22 per cent fall in funds under management and lower revenue from advice due to weak market conditions.
However, like a number of other major financial services houses, MLC reported strong insurance sales, with annual inforce premiums up 10.8 per cent albeit that cash earnings declined by 5.3 per cent.
Commenting on the result, NAB group chief executive Cameron Clyne said the fall in cash earnings reflected the tough economic conditions that continued to deteriorate as the half-year progressed.
“We continued to grow revenue while carefully managing costs, but this was offset by increased bad and doubtful debts and higher funding costs,” he said.
AUTHOR
Mike Taylor
Recommended for you
SuperRatings has shared the top 10 balanced options of the last financial year.
Rest Super remains “fully committed” to equities, even as it anticipates higher market volatility than experienced in previous decades.
Australian superannuation funds have again generated strong returns for FY25, with the median growth fund returning 10.5 per cent for the year, according to Chant West.
The US remains a standout destination for innovation and commercialisation, according to MLC Asset Management chief investment officer Dan Farmer.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom 465 Calder Road Calder
99.46 3 y p.a(%)
2
DomaCom DFS Mortgage
95.46 3 y p.a(%)
3
Global X 21Shares Bitcoin ETF
78.55 3 y p.a(%)
4
BetaShares Crypto Innovators ETF
50.39 3 y p.a(%)
5
Global X GlobalX FANG+ ETF
47.50 3 y p.a(%)
