Despite strong insurance sales, St George Bank’s wealth management unit posted a lower profit before tax for the 12 months to September.
Profit before tax dipped 8 per cent to $194 million, compared to $210 million last year, a St George statement to the Australian Securities Exchange said yesterday.
The division comprises Asgard, Securitor, Advance Asset Management, licensee services, margin lending, direct shares, private banking and life and general insurance.
Revenue from general and life insurance sales climbed 13 per cent, while growth in internal life insurance new business gross written premium soared 39 per cent over the financial year, the statement said.
Cash investment accounts held with the bank by Asgard investors surged 32 per cent to $4.9 billion, from $3.7 billion last year.
Asgard’s integrated financial planning and practice technology, AdviserNETgain, increased the number of participating practices by 75 per cent to 245 over the financial year.
However, Asgard’s funds under administration dropped to $31.1 billion, from $37.3 billion last year.
Overall, St George’s cash profit was 13 per cent stronger to $1.32 billion, compared to $1.16 billion last year.
The group’s shareholders are set to vote on a merger deal between St George and Westpac Bank next month.
In August, St George Bank announced that AIG Life Australia had become its new life insurance partner.
