YBR’s wealth business posts massive jump
Yellow Brick Road's (YBR's) wealth management division posted a huge jump in revenue, although the group's overall result was a loss of $6.6 million.
According to YBR's annual results, its wealth division is the fastest-growing division in the company, with revenue having grown by 217 per cent in the last financial year.
This is compared to the 127 per cent growth in its branch network business revenue, 118 per cent growth in mortgage revenue and 29 per cent growth in general insurance.
However, the group posted an overall loss of $6.6 million, which is in line with expectations, according to chief executive officer Matt Lawler.
"It is important for shareholders to note that during the period the business doubled its marketing expenditure as part of our stated strategy to aggressively grow the brand and deliver on our consumer acquisition objectives," Lawler said.
Yellow Brick Road has gone through the second year of it's three-year build phase, in which the group created a strategic alliance with the Macquarie Bank, launched its RetireRight superannuation fund through the third series of The Celebrity Apprentice Australia and celebrated the one-year anniversary of its Smarter Money fund, which returned 7.2 per cent after fees in the last year.
"The coming year will be critical in terms of finalising our build phase, with a targeted focus on customer acquisition, distribution growth and enhancement, and the completion of our product platform roll-out (targeted for the first quarter)," Lawler said.
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