Wealth manager AXA Asia Pacific Holdings yesterday met its updated July guidance for its profit and investment returns for the June 30 half year, but the company's outlook remains as clouded as ever by the ongoing attempt by the National Australia Bank to craft a deal that will pass muster with the competition regulator, the ACCC.

AXA AP yesterday told the market that first half profit fell 19% (which it forecast on July 21) and added that management has not been distracted by its potential acquisition by National Australia Bank.

There were more reports around yesterday that the NAB had redrafted its bid and submitted to the ACCC, which was still deciding whether to go to market for comment or reject it.

NAB reportedly has done a deal with the IOOF group on buying the North investment platform and associated managed funds that are currently in AXA. NAB has a similar product called Navigator which has substantially more funds under management and a much larger market share of the platform business.

"As our performance demonstrates, despite the focus by others on the potential acquisition of our businesses by National Australia Bank and AXA SA, management's focus has been and will continue to be on business as usual," chief executive Andrew Penn said in yesterday's statement.

NAB is aiming to buy AXA APH, then on-sell the company's Asian assets to the company's French parent, AXA SA, while retaining the Australian and New Zealand assets.

AXA reported net profit for the six months to June 30 of $219 million, down from $270 million in the previous corresponding period.

First half operating earnings were $270 million, up 6% on the previous corresponding period's $255 million.

These were also in line with forecasts provided by the company last month.

Profit after tax and before investment experience and non-recurring items was $286 million, up 8% on the previous corresponding period's $266 million.

AXA declared an interim dividend of 9.25c per security, 10% franked, which was also revealed in the July update.

Mr Penn said projected economic growth in Asia was well ahead of the rest of the world.

"As GDP per capita increases in developing markets the marginal dollar that is allocated to life insurance, savings and investments - the products that we sell - increases significantly," he said.

"That is why in our sector these markets are expected to grow at least two times as fast as GDP as they become wealthier."

AXA is also well-positioned to respond to anticipated regulatory changes in the Australian financial services and superannuation industries, Mr Penn said.

Operating earnings in Australia were up 25% on the previous corresponding period to $94 million, while in New Zealand operating earnings were up 22% to $16 million.

The gains were made on higher average funds under management as investment markets recovered and on growth in AXA's financial protection business.

In Hong Kong, operating earnings fell 20% to $141 million, mainly due to unfavourable currency movements, AXA said.

When expressed in Hong Kong dollars, operating earnings rose slightly.

South East Asia operating earnings were up by 90% on the previous corresponding period to $33 million (in 2009 $17 million) because of growth in Indonesia and Thailand.

India, China and the Ipac Asia operations posted a loss of $13 million.

AXA's funds under management were $78.44 billion at June 30, down 3% from the end of 2009.

AXA shares fell more than 3.5%, or 19c, yesterday to $5.21.

That was an unusually sharp drop when the wider market was only down 0.6%.

Are some investors getting nervy and thinking that the NAB deal might not happen?