Funds management earnings down for BTFG
BT Financial Group (BTFG) is attributing a decline in the cash earnings raised from its funds management business to its partial sale of BTIM in the second half of 2015.
Parent company, Westpac, announced that the group's cash earnings for the first half of the 2016 financial year were down $21 milllion, to $262 million, in its interim financial results 2016 report to the Australian Securities Exchange.
"First half 2016 results reflect the full period impact following the sale of BTIM in June 2015 and the move to equity accounting of $8 million," the report said.
"The value of the funds business continued to increase with a large balance sheet in private wealth and continuing funds under management (FUM) and funds under advice (FUA) flows.
"These gains were offset by weaker asset markets, foreign exchange movements and a lower contribution of advice."
The group reported that operating expenses fell by $71 million (12 per cent), with the partial sale of BTIM and the move to equity accounting reducing expenses by $58 million.
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