Westpac Group’s 2011 full-year results highlight its retail and wealth divisions as key drivers of cash earnings that will allow the business to add further value in the future.
Cash earnings for the Australian banking group increased 7 per cent to $6.3 billion for the full year 2011, the banking group said.
Westpac retail and business banking reported an 11 per cent increase, St George increased by 12 per cent and Westpac New Zealand was up 41 per cent, boosting BT Financial Group’s (BTFG) cash earnings by 9 per cent through cross-selling.
“BTFG had a strong year, increasing cash earnings 9 per cent with improved funds management earnings and a stronger insurance result,” Westpac said.
“This was an impressive performance given significantly higher disaster-related claims in the first half of the year, weaker asset markets impacting [funds under management/funds under administration] returns and a $13 million expense associated with the acquisition of J O Hambro by BTIM.
“A particular highlight was the growth in funds under administration, helped by growth in FUM of over $500 million for BT Super for Life.”
Westpac chief executive Gail Kelly said the group’s strong cross-selling had been a highlight, with wealth and insurance products contributing to BTFG’s increased cash earnings.
“Our set of brands across banking and wealth is a key differentiator for us … and our ability to link banking and wealth at the frontline. Most banks across the world struggle to get that right,” Kelly said.
“An example of that would be in our Super for Life sales where we achieved 1500 sales throughout branch networks per week.”
