Westpac signals continuing focus on wealth
Westpac has recorded a 15 per cent decline in full-year net profit after tax of 15 per cent to $5,970 million on the back of higher impairment charges and a 94 per cent increase in income tax expense.
However the big banking group pointed to a strong result from its new Australian Financial Services division, which includes Australian retail banking, business banking and wealth operations.
The group described the income tax expense as a "large one-off benefit from St George tax consolidation" while its chief executive, Gail Kelly, described the outcome as a strong result in a lower-growth economic environment.
Westpac's announcement released on the Australian Securities Exchange (ASX) today said that BT Financial Group (BTFG) had a strong second half, with cash earnings increasing 17 per cent compared to the first half, but down 10 per cent when compared with last financial year.
It said the BTFG earnings had been impacted by lower asset markets, a reduced contribution from the equities business and the de-risking of the lender's mortgage insurance business.
However it said the strong underlying performance had been "supported by further growth in its planner network and a strong result across life and general insurance".
The ASX announcement said BTFG had continued to lead the market in funds under administration flows, increasing corporate superannuation flows, increasing insurance cross-sell and in expanding its adviser network.
Looking into the immediate future, the Westpac announcement said the banking group would continue to position itself in line with the significant economic shifts which had occurred over recent years.
In doing so, it said that in terms of growth it would be "building on its strength in wealth through increasing focus on superannuation and insurance, investing in developing a next-generation wealth platform and increasing the number of advisers".
AUTHOR
Staff Writer
Recommended for you
In this episode of Relative Return, host Maja Garaca Djurdjevic is joined by shadow treasurer Angus Taylor to discuss the current state of the financial advice sector, the economy, the housing affordability crisis and more.
In this episode of Relative Return, host Laura Dew speaks with Andrew Mitchell, director and senior portfolio manager at Ophir Asset Management, about why he loves working in fund management and the lessons he’s learnt in a decade of running a firm.
In this episode of Relative Return, host Laura Dew speaks with Blackwattle Investment Partners managing director and chief investment officer, Michael Skinner, about setting up an asset manager and what he looks for in an investment team.
In this special episode of Relative Return, Momentum Media’s Phil Tarrant and Jordan Coleman discuss the publishing house’s expansion into greater coverage of the wealth management space.
