The two suitors for Axa Asia Pacific Holdings (Axa APH) have used their quarterly reporting announcements to reiterate that they are seriously in the game.

In an unfolding war of nerves, AMP CEO Craig Dunn says the Axa APH Australasian assets his company is seeking remain “strategically attractive”.

Mr Dunn predicts AMP will gain flexibility the longer the takeover battle with National Australia Bank (NAB) drags on.

The Australian Competition and Consumer Commission is due to make recommendations on March 17 on the effects either company’s success in the bidding war would have on competition in the wealth management industry.

Financial media commentators speculated last week that AMP may top NAB’s $6.43 a share cash bid with a revised offer of up to $6.80 cash.

NAB CEO Cameron Clyne has told shareholders most of the due diligence in its bid for Axa APH has been done, and it shows the transaction would make financial and strategic sense for the bank.

Net profit for the full year was up 27% on the 2008 result to $739 million – a result the company describes as “robust” in a very difficult business environment.

The bank failed to inspire the sharemarket with a $1.1 billion net profit for the December quarter, up 20% on the previous corresponding period but lacking the punch of recent results from its major competitors.

The recovery in investment markets strengthened revenue for subsidiaries MLC & NAB Wealth, and the bank says the integration of Aviva’s Australian life and pensions business and wealth management platform that it bought last year are progressing well and exceeding expectations.

AMP has reported a 76% rise in net profit to $377 million for the half year to December 31 compared with the previous corresponding period.