NAB aims to offload its MLC wealth management business by the end of next year.

It is exploring options including a trade sale, demerger or initial public offering.

“We are reshaping our wealth business,” bank CEO Andrew Thorburn said.

“We are not exiting wealth management. We need to simplify. What MLC divestment will do is enable us to have a simpler bank – and there are huge opportunities in the bank. The complexity in the bank is just killing us.”

The MLC business, which comprises advice, platform and superannuation and asset management, accounts for 4% of NAB’s overall earnings.

“They’re quite small,” Mr Thorburn said. “But once we divest it… I think it will be a very significant business.”

NAB sold MLC’s life insurance business to Nippon Life two years ago.