Wealth division of National Australia Bank (NAB) has reported profit of A$256 million for the half-year to March 2013, down 1.5% from A$260 million reported a year ago.
The bank’s investment business grew strongly as funds under management (FUM) increased by 10.7% to A$13.2 billion as a result of strong market performance and positive net flows.
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Overall, the banking group reported net profit attributable to owners of the company of A$2.52 billion, an increase of A$468 million or 22.8%.
Revenue increased by 1.6% driven by growth in Personal Banking, NZ Banking and Wholesale Banking. Group net interest margin (NIM) was 2.03%, three basis points lower than in the September 2012 half year result.
NAB chief executive Cameron Clyne said: "Personal banking again delivered a good result, further strengthening its position in housing lending and customer deposits as the business continued to build on its differentiated customer proposition."
"Wholesale banking was also a key contributor to the group’s positive result as it increased cross-sell to the group’s customers. Business Banking maintained its market leading position in business lending and the wealth investments business also performed well with stronger client acquisition."
He added that a strategic review of its ailing British operations, which include the Yorkshire and Clydesdale banks, was ahead of schedule.
