BT Financial Group (BTFG) has contributed $397 million in cash earnings to the Westpac Group result – a decrease of 11% per cent on the prior corresponding period.
The result was affected by margin compression from Accrued Default Amounts (ADA) superannuation migrations, competition for flows and significant General Insurance claims increase from Cyclone Debbie and the Sydney hail storms.
Chief Executive Brad Cooper said BTFG was operating in a challenging environment but had achieved significant strategic milestones across the business.
“This half we delivered a step-change in managing clients’ superannuation, SMSFs and investments with the integration of superannuation and insurance on BT Panorama,” Mr Cooper said.
“This was a crucial milestone in the build of BT Panorama as advisers now have an end-to-end solution to manage all of their clients’ financial needs no matter their product structure.
“Our funds management businesses had positive flows, maintaining its number one market share position on all retail platforms.”
BTFG’s Life insurance business remains a standout industry performer with cash earnings up 15% and lapse rates remain industry leading.
“Over the period our Life business was once again awarded as a standout, awarded Life company of the year for the second consecutive year* and recognised by IRESS as having the highest quality Life cover. 3
“We are exceptionally proud of our Life business, its high quality product, its intense focus on our customer gives us better retention and materially lower lapse rates than our competitors,” he said.
Mr Cooper said wealth management remained an integral part of helping Australians prepare for their best financial futures and he was confident of the long term opportunity.
“Australians want help in how do I buy a home, educate the kids, accumulate assets and protect them and, importantly, save for and invest to ensure that you can live a dignified life in retirement,” he said.
Full Year performance highlights
Our funds management businesses had positive flows, maintaining their number one market share position on all retail platforms
Funds Under Management up 19%
Market leading FUA growth of 4% on the half and 11% on the year, $6B and $13B respectively
Foundation for Panorama to now exceed $4.3bn in Funds Under Administration
