A solid performance by BT Financial Group (BTFG) has helped drive Westpac's first-half cash earnings up 10 per cent compared to the same period last year.
In an announcement released on the Australian Securities Exchange (ASX) today, the big banking group reported the 10 per cent increase on first-half cash earnings and an 11 per cent increase in statutory net profit to $3,304 million.
On a divisional basis, the ASX report revealed that while BTFG had increased cash earnings over the same period last year to $345 million, this was down 2 per cent on the second half of 2012.
However, the report showed that advice income had increased 13 per cent ($16 million) "from new revenue generated by an expanded planner network with greater focus on targeted segments and increasing customer-facing time".
The report to the ASX noted that strategic investment added around $12 million to expenses, including expansion of the distribution network, particularly financial planners and their support staff and private bankers.
Outlining the divisional growth, Westpac CEO Gail Kelly said BTFG had benefitted from strong flows onto platforms, growth in superannuation, stronger financial planning revenue and a further rise in insurance premiums.
Looking at the broader Westpac group, Kelly noted that the operating environment continued to be challenging with subdued lending growth.
"However in line with our strategy, we are actively targeting opportunities in higher growth areas where conditions are more favourable, such as deposits, wealth, trade finance and natural resources," she said.
Looking over the horizon, Kelly said the Australian economic conditions had softened in the first six months of the year, with economic growth slowing to around 2.5 per cent.
She said the banking group would be targeting higher growth areas including the prime of life (over 45 years old) segment and the wealth, Asian, trade finance, natural resources, health and education sectors.
