Can NAB make a go of the Goldman Sachs JB Were broking business?
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During the week NAB purchased 80.1% of Goldman Sachs JB Were’s brokering business for $99 million but will be purchase be another bank debacle for the big four banks.
The brokering business has approximately 22,000 customers and while consuming around 8% of the domestic broker market in Australia is far from the hey-day of JB Were’s peak. The decision for NAB to purchase a controlling interest is a bid decision in light of the broader failures experienced by all the banks will wealth management operations.
But can NAB make a success of this? NAB have arguably bought the operations in a downturn which will benefit the bank but the business is likely to experience significant leakage of major brokers and broker clients as the leading brokers start their own operations or get snapped up by other majors like Macquarie.
The old days of brokering houses being a goldmine appear to be long gone and unless NAB can find a way to create ‘rivers of gold’ again from the operation then it’s likely it will be a failure. Althoughs JB , at a cost of $99 million is is marginal in the scheme of the banks overall operations both in positive and negative terms.
What do you think of the decision to buy the Goldman Sachs JB Were brokering operations? Are you a client who will stay with them under NAB or will you leave? Share your thoughts in our comments section.
ANZ close to securing RBS Asian Assets
Reports indicate that ANZ may be close to securing the key Asian assets of the Royal Bank of Scotland (RBS). ANZ have kept no secret of the desire to secure the assets but are keeping their lips tight at the moment and not revealing any information ahead of a possible announcement next week.
Should ANZ secure the assets it will be a massive boost for the plans of ANZ Bank to develop a super-regional bank that will better help it differentiate itself from the other Australian banks.