NAB profits up, zeroes in on super business
NAB has reported a 6.5 per cent profit increase to $3.3 billion in its 2016 half-year results as the bank flags plans to further align its banking and wealth functions and develop its direct offerings.
NAB Wealth's cash earnings increased by 12 per cent to $249 million, which the bank said was driven by stronger insurance.
"NAB Wealth has continued its track record of delivering significantly improved results since 2013. The long term partnership and sale of 80 per cent of our Life Insurance business to Nippon Life is progressing well and remains on track for finalisation in the second half of calendar year 2016," NAB Group chief executive Andrew Thorburn said.
"This important transaction allows us to continue to provide insurance solutions to customers while improving Wealth returns for shareholders. In addition, we know there is strong upside for our investments and superannuation business from enhancing the customer experience and developing a closer relationship with our banking operations."
NAB said in in its investor presentation that it would further develop its direct offering for both superannuation and insurance via NAB internet banking.
The bank said it planned to invest "at least" $300 million pre-tax over four years in its superannuation and investments business and would improve digital advice tools for both customers and advisers.
Furthermore, NAB said it planned to consolidate to create one of Australia's "largest superannuation funds" which, according the bank, would provide scale and simplification benefits, reduce IT complexity and provide a more consistent customer experience.
At the same time, NAB's revenue rose by 3.3 per cent and the bank reported that its dividend remained unchanged at 99 cents per share fully franked.
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