In its latest filing with the ASX, Westpac reported funds under management of $105 billion on its BT Panorama platform, an increase of 112 per cent on the year.
Westpac announced the sale of BT Panorama last year, noting the process would commence in February.
“We will continue to invest in the platform as we set it up for future growth and success,” a BT Panoram spokesperson told ifa at the time.
“The process is expected to take some time as we seek the right owner.”
On Monday, in its first half financial results filing, Westpac said net inflows on the Panorama platform reached $1.5 billion in the first half.
Active advisers on BT Panorama followed the upward trend despite Westpac’s plans to offload the platform, reaching 6,059 at the end of March, up 72 per cent on the year.
Also in the first half, Westpac reported cash earnings of $3.1 billion – a 71 per cent increase on the prior corresponding period (pcp).
Statutory net profit also surged on pcp by 63 per cent to reach $3.28 billion.
When addressing the decline in cash earnings over the year, Westpac CEO Peter King attributed the drop to “competitive pressures on net interest margins and returning to an impairment charge after having benefits last year”.
Touching on Westpac’s divestment of BT businesses, Mr King said the bank will focus on investing in “improving customer experience, focusing on making customer service easier and faster, accelerating digital, and building our banking expertise and capability”.
BT currently holds the leading market share of 18.3 per cent according to the Plan For Life Platform Wrap Admin Report, down 0.5 per cent on the previous half.
Wonder why they would sell it after so much investment into it initially.
Good question. But the banks now don’t want financial services anymore. Its probably 10% of the profit, 50% of the problems.
Same reason the banks paid out millions in “fee for no service” compensation to clients who did actually receive the service they paid for.
After Hayne’s Royal Circus the regulatory and reputational risks associated with financial advice are perceived as a potential threat to the bank’s much larger home loan business. They want to tidy up and get rid of their financial advice operations, even if they lose money doing so.