National Australia Bank completed the sale of its New Zealand wealth management business to FirstCape, a newly established entity.

The sale merges NAB's JBWere New Zealand and BNZ Investment Services with Jarden Wealth and Harbour Asset Management, forming a leading advisory and asset management firm in New Zealand.

The bank retains a 45% stake, Jarden holds 20%, and Pacific Equity Partners holds 35%.

The transaction is expected to yield a pre-tax gain of about $400 million, to be included in the group's statutory net profit for the half-year ending Sept. 30.