Australia’s biggest bank the National Australia Bank is to merge its private banking business with business and institutional banking, accor...

Australia’s biggest bank the National Australia Bank is to merge its private banking business with business and institutional banking, according to reports in the local media.

NAB’s private banking business is currently run from the Sydney-based MLC wealth management operation. It has been one of the most successful units of the bank, increasing its profits and customers numbers by around 20 per cent a year.

In broad terms, NAB defines private banking clients as those with investable assets of between A$3 million ($2.35 million) and A$20 million. NAB believes that advice for wealthy individuals is inextricably linked to business advice.

The bank said it wants to take a holistic view of the client, so as to deal with both their personal and business requirements.

The Australian private banking market is estimated by the Boston Consulting Group to comprise around 120,000 individuals.

The number of millionaires in Australia is increasing faster than anywhere in the world. Over 2003-4, the number of millionaires (in US dollar terms) in Australia grew by 11 per cent to an estimated 117,000—above the world average growth of 7.5 per cent over the same period.

According to the Australian Bureau of Statistics, the country’s total wealth now stands at around A$5 trillion ($3.86 trillion), or the equivalent of A$250,000 ($193,125) per capita in a society of 20 million.

NAB and another leading Australian bank Westpac are believed to have the biggest market share, controlling at least 50 per cent of the market.