subscribe to our newsletter

NAB exits wealth

The big four bank has completed the sale of investment and superannuation arm MLC to wealth juggernaut IOOF.

The deal has seen NAB pivot after 21 years of wealth management, selling MLC for $1.4 billion, compared with when it bought the business for $4.56 million in 2000 from Lendlease.

NAB entered the agreement with IOOF last year, following its strategy of slimming down and simplifying the business to its core banking component in the royal commission aftermath.

The acquisition took effect and saw IOOF take control from 11.59pm on Monday (31 May).

“This successful exit of MLC Wealth simplifies our portfolio and allows us to continue to focus on our core business,” NAB Group chief executive Ross McEwan said.


“NAB is becoming a simpler, more accountable business, enabling us to more consistently get the basics rights and deliver on our ambition for customers and colleagues.”

Proceeds of the sale are expected to increase NAB’s group common equity tier 1 capital ratio by around 35 basis points.

For IOOF, the deal has established it as the largest retail wealth management player in Australia, doubling the size of its business to $494 billion in funds under management, administration and advice.

Around 84 per cent of MLC’s advisers (406 in total) have chosen to move with the business over to IOOF.

The group will now serve 2.2 million clients and superannuation members.


IOOF CEO Renato Mota said the acquisition had given his company a “strong platform for future growth”.

However, NAB will retain legal ownership of MLC’s advice entities for the purpose of completing advice-related remediation programs.

[Related: Investor lending continues rise: APRA]

NAB exits wealth
NAB exits wealth

If you’re feeling overworked and overwhelmed in this fast-paced mortgage market, it’s time to make some changes, and the Business Accelerator Program can help! Early bird tickets are on sale now. Work smarter, not harder, this year.

Sarah Simpkins

Sarah Simpkins is the news editor across Mortgage Business and The Adviser. 

Previously, she reported on banking, financial services and wealth for InvestorDaily and ifa.

You can contact her on This email address is being protected from spambots. You need JavaScript enabled to view it..

Latest News

The digital property settlements platform has appointed independent company directors to its board as it expects to begin trading on the ASX...

A report has called for a royal commission and the Reserve Bank to address soaring house prices, warning that the Australian property market...

Auction volumes were lower last week amid ongoing lockdown restrictions in Melbourne and a long weekend in several states and territories, a...

How long do you think it should take to discharge a mortgage?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.