Westpac posted record full-year cash earnings of $3.507 million with net profit up 12 per cent to $3.451 million for the year, matching analyst estimates.
Westpac’s wealth management division, BT Financial Group, saw a 23 per cent jump in net profit to $417 million for the 12 months as superannuation contributions boomed.
BT’s wrap platform grew 44 per cent for the same period. Wrap funds under administration (FUA) were up 44 per cent, while wholesale funds under management (FUM) were up 43 per cent.
The bank also announced improved margins for both FUA and FUM.
BT’s funds management business returned an increase of 26 per cent and insurance was up 21 per cent.
High growth in broking, margin lending and advice all delivered revenue growth in excess of 30 per cent.
The wealth management business’s FUA grew by 14 per cent to $46.2 billion and FUM grew by 6 per cent to $41.3 billion.
BT Financial Group chief executive Rob Coombe said BT’s continued growth and strong contribution to Westpac’s results had been underpinned by the performance of its expanding funds management business, market leading wrap platform, and excellent results from its advice and insurance arms.
“Wealth is the biggest opportunity in the Australian market and success in this space will come to the participant who properly integrates wealth and banking,” Morgan said.
Westpac’s shares gained 52 cents or 1.7 per cent to $31.06 at the close of trade yesterday.
