BT Financial Group delivers for Westpac

Westpac Banking Corporation, boosted by its acquisition ofBT Financial Group, has reported a $1.2 billion operating profit for the half year ending March 31, a 17 per cent increase on 2003.

Westpac chief executive David Morgan says BT’s contribution to group performance demonstrates the bank was right in its decision to buy the funds management business back in 2002.

“Our business units have performed strongly. In particular our decision to acquire the BT business in August 2002 has proven to be the right one. BT is now a major contributor to our financial performance and places Westpac in a strong position in the funds management industry,” Morgan says.

BT’s cash earnings over the period rose 25 per cent on the aggregated earnings over the corresponding five month period BT contributed to in 2002/2003.

Westpac says the continued growth of the BT Wrap is particularly pleasing, with the wrap’s funds under administration having grown from $7.1 billion at the time of acquisition to total $11.6 billion as at the end of March.

While BT’s funds under management, which now stand at $42.4 billion, were buoyed by a decline in redemption levels and positive domestic and international market conditions.

As for the broader Westpac group, a number of other business units experienced solid growth over the period, including a 19 per cent growth in cash earnings in its Australian Business and Consumer Banking arm and an 11 per cent growth in cash earnings for its Institutional Banking division.