BT drives strong Westpac result

A strong performance by BT Financial Group helped drive Westpac to a strong full-year finish.

The big banking group announced to the Australian Securities Exchange (ASX) today that it had reported a 10 per cent increase in statutory net profit to $6,991 million, on the back of a 7 per cent increase in cash earnings of $6,301 million, rewarding investors with a final fully franked dividend of 80 cents per share.

The degree to which BT's performance has driven the Westpac result was highlighted by chief executive Gail Kelly, who referenced it as a "highlight", saying there had been a strong "uplift in the cross-sell of wealth and insurance products which contributed to a 9 per cent increase in cash earnings for BT Financial Group".

"The division welcomed over 70,000 new customers onto the BT Super for Life platform over the year, and our insurance cross-sell has continued to increase from already high levels," Kelly's announcement said.

The ASX announcement also noted that the St George Banking Group had improved momentum through the year, lifting cash earnings by 12 per cent.

It said growth had been achieved through depth of customer relationships, which was reflected in a strong cross-sell, particularly in insurance and superannuation.

The Westpac chief executive said the global operating environment was clearly evidencing weakness with sovereign debt issues across the Eurozone and weak growth in the US.

"International events have weighed heavily on consumer and business confidence in Australia and are contributing to a softer outlook," Kelly said. "Nevertheless, Australia remains well placed to continue to grow, and has the policy flexibility to respond to global conditions as required."