The announcement of the deal came just as the Canadian bank posted its results for the quarter ended 30 April, showing net income at its wealth management segment of $43 million, a rise of 48 per cent on a year-over-year basis. The firm attributed the strong growth to an increase in assets under management and administration, generating more revenue from trust services and mutual funds, as well as larger commission revenue.

Expenses also rose by $8 million at the wealth management business to hit $161 million, which National Bank said was partly due to an increase in salaries and variable compensation as brokerage revenues rose. The efficiency ratio improved, from 78 per cent in Q2 2010, to 73 per cent for 2011.

As a group National Bank Financial reported net income of $295 million in the second quarter, up 13 per cent from $261 million in the same quarter of 2010,  and a Core Tier 1 capital ratio of 8.2 per cent as at 30 April.

On purchasing Wellington West, the bank will be integrating a firm with some 223 advisors and 50 branches in Canada, as well as around 68,000 individual customers.

“We will confirm all synergy opportunities and if some employees are eventually affected, they will be treated fairly, with proper severance and relocation assistance,” said Luc Paiement, executive vice president wealth management NBFG, co-president and co-CEO of National Bank Financial.

Charlie Spiring, who built up the Wellington West business, will become vice chairman of National Bank Financial. Under his leadership assets under administration at Wellington have grown at a compound annual rate of around 12 per cent since 2005, the firm said in its announcement.

The deal is part of National Bank’s strategy to increase its presence outside of Quebec, and will bring the firm’s assets under administration to $67 billion, according Paiement.