Banking group Westpac has hinted that there may be upgrades to its wealth management unit, BT Financial Group (BTFG), after posting higher interim 2010 earnings.
Westpac said it has a “program of wealth projects” designed to boost cross-selling and enhance operational efficiency in areas including equities on BT Wrap and a “new private bank” solution.
At the start of the year Westpac began cross-selling BT Super for Life through its St George and Bank SA units, which helped boost sales of the product.
“Since the product’s inception [in October 2007], we experienced the largest month inflows in March this year,” a BTFG spokesperson said.
BT Super for Life’s funds under management (FUM) rose 33 per cent to $685 million for the six months ended 31 March 2010, according to a Westpac report.
The report also revealed a rebound in BTFG’s cash earnings as investment markets recovered.
Cash earnings jumped 40 per cent to $301 million for the half year ended 31 March. BT Wrap and its corporate super solution drew net inflows of $4.5 billion over the period.
Average funds under advice (FUA) across units including BT and Asgard jumped 23 per cent to $77.9 billion, while FUM gained 12 per cent to $44.5 billion.
Westpac also added 185 full-time staff to BTFG to support growth in advice and insurance, the report said.
Westpac’s overall cash earnings for the first half rose 30 per cent to $2.983 billion.
Despite stronger profits, Westpac chief executive Gail Kelly said the group remained cautious.
“We expect the effects of the global financial crisis to be with us for many years. Indeed, recent issues in Europe have highlighted the fragile nature of the recovery in some global markets,” she said.
