In Westpac’s financial results report for 2014, the bank reported BTFG’s revenue is up 16 per cent on the previous year, with its results boosted by a 26 per cent increase in funds under management (FUM) and growth across its general and life insurance.
“Given the normal seasonality in the wealth business associated with insurance claims and fund activity, cash earnings for BTFG is best compared on an annual basis,” the Westpac report said.
“Funds management cash earnings were up $110 million or 26 per cent, driven by higher funds management performance fees (in BT Investment Management), strong net flows onto platforms and an increase in average FUM and [funds under advice] of 25 per cent and 14 per cent respectively,” the report said.
“The insurance contribution was up a strong $51 million or 19 per cent, supported by a rise in net earned premiums of 19 per cent in life insurance and 14 per cent in general insurance,” it said.
BTFG chief executive Brad Cooper said BTFG’s “strong business model” was behind “another significant result”.
“We have stayed close to advisers and helped them navigate through regulatory change, run efficient businesses as well as provide real solutions so they can deliver on their clients’ objectives,” Mr Cooper said.
“We have a clear strategy to help Australians achieve their best financial future and we are pleased with the performance for 2014 and are working hard to deliver more initiatives in 2015,” he said.
