NAB pulls plug on Your Prosperity
In a move aimed at stemming losses from its Internet businesses, the National Australia Bank has abandoned its online wealth management subsidiary, Your Prosperity.
Both this division and National Online Trading have accumulated losses of around $500 million since being launched in the late 1990s. A $10 million advertising campaign begun in June 2000 to build the Your Prosperity brand has failed to generate adequate sales growth. The Your Prosperity business will now be absorbed into National Online.
Your Prosperity offered share trading, margin loans, superannuation and retail investment products. The only bank-owned online trader to record a profit in 2001 was the Commonwealth Bank's CommSec, which reported net earnings of $13.8 million. All the other banks are battling to make their online wealth management businesses profitable. Westpac's Internet broking service has accumulated losses of $25.4 million since its launch in 1999.