The number of planners in Westpac-aligned dealer groups has increased 10 per cent in the last 12 months, which was cited as one of the major reasons the bank’s wealth management division performed particularly well.
Westpac released its results for the year ending 30 September to the Australian Securities Exchange this morning, posting an overall profit of $6.8 billion.
The figure represents double-digit growth on 2012, according to the report.
The Australian financial services division posted a particularly strong result, with BT Financial Group (BTFG) reporting double-digit growth in operating profit, cash earnings and funds under management/administration.
One of the highlights is the $32 million increase in advice income, which was attributed to an expanded planner network with greater focus on targeted segments and increasing customer facing time, the bank stated.
The expansion of life insurance distribution to the independent, as well as aligned, financial adviser networks resulted in stronger sales and increased revenue on this front.
However, not unlike its competitors AMP and National Australia Bank, Westpac’s life insurance division had been affected by a modest deterioration in lapse rates and an increase in claims.
BTFG chief executive Brad Cooper said the group’s overall strong result was supported by growth across investment, private banks and insurance.
“In particular, life insurance continued to see strong growth in market share to above 10 per cent and we have seen in-force premiums grow 14 per cent year on year,” Cooper said.
“The market has also responded very favourably to the strength of our advice offer, with the number of planners in our aligned dealer groups increasing 10 per cent.
“Meanwhile, our platforms and corporate super funds under administration grew to more than $100 billion for the first time. Our superannuation business continues to grow and we remain No. 1 in our platform market share.”
