Robert Coombe: No hurry on MLC spin-off from NAB

MLC is ‘very close’ to becoming a standalone business separate to NAB, but the bank is in no hurry, says MLC’s new chairman.

Incoming MLC chairman Rob Coombe on Tuesday. Picture: Jane Dempster

MLC is “very close” to becoming a standalone business separate to parent company NAB, but the bank is in no hurry to push ahead with a trade sale or float of the wealth manager unless all stakeholders will benefit, according to incoming MLC chairman Rob Coombe.

Speaking to The Australian, Mr Coombe, who on Tuesday was confirmed as the new chairman of National Wealth Management Services Limited, the head company of MLC Wealth, said splitting from NAB would be a delicate operation.

“The first thing [I will do as chairman] is deeply immerse myself in the plans not just around separation, but the way forward. And the second thing for me to become comfortable with is the ability to execute those plans. That’s really where I’ll be spending most of the early days,” Mr Coombe said.

The appeal of the move back into financial services was partly due to the broad shift taking place in the industry, he said.

“There’s a lot of interesting things happening in this space at the moment,” he said. “It’s probably the most interesting time in about 20 years, which was when the banks bought up these assets. All of them, pretty much, being up for sale at the moment, that is quite a transformative period and I like to be involved in things like that.

“Second, on this asset, in particular, I’ve been watching it from the sidelines. And I’ve gotten an incredible amount of respect for Geoff [Lloyd], who I’ve worked with and known for many years, and I’ve been really impressed with the team that he’s been assembling there.”

The former Westpac banker will step into the chairman role on July 1 and takes over from MLC chief executive Geoff Lloyd, who will remain on the board. Announcing the appointment, NAB chairman Phil Chronican said the move was an important next step in the path to establishing MLC as a standalone business.

“Rob has the right leadership skills and experience for MLC as it separates from NAB at a critical time for the wealth management sector and its clients,” Mr Chronican said.

“He has extensive relevant experience in wealth management and financial services, including superannuation, asset management, retail and private banking and financial advice businesses. MLC is well progressed in its plans to reshape, restore and renew its business and this appointment represents another important milestone in its establishment as a standalone business with strong corporate governance.”

After originally announcing its intention to spin off the wealth business in 2018, NAB was last year forced to push out its plans for its wealth arm as it dealt with customer remediation in the wake of the banking royal commission.

It is now focused on establishing MLC as a standalone business in the near term, with a spin-off or sale said to be a more medium-term goal.

“Day-to-day as a standalone unit, MLC is very close to that within the context of still being owned by NAB,” Mr Coombe said.

“As far as physical (separation), that’s the outcome of a process but the reality is NAB’s not in any hurry,” Mr Coombe added. “It has said that it intends to [sell] but obviously it needs to make sure that all the stakeholders get a good outcome through this. That’s not just NAB shareholders, it’s the policyholders and the unitholders in the various products that are offered by NAB as well. So we’ll take our time and make sure that that all works well.”

Mr Coombe was formerly group executive of Westpac’s retail and business banking divisions and CEO of BT Financial, where he was responsible for all Westpac’s funds management, financial planning, insurance, private banking, broking, platform and superannuation businesses in Australia.

He is also chairman of ASX-listed Generation Development Group, Tibra Capital and an independent director of ASEAN bank CIMB.