WT Financial optimistic of advice demand as NPAT doubles
WT Financial believes the “supply-demand equation” is weighted firmly in favour of advisers as the volume of household wealth and superannuation grows dramatically.
Results for the FY2022–23 show the firm saw a 57 per cent increase in revenue and a doubling of net profit after tax (NPAT) to $4.1 million, up from $1.8 million in the previous year.
In its annual report, the firm said it is supporting around 400 practices nationwide at a time when the number of advisers is approaching 15,000, down from more than 25,000 in 2019. This has been the result of its acquisitions of Sentry, Wealth Today and Synchron.
Its network now advises on $18 billion of assets under advice and $320 million of annual in-force personal insurance premiums.
Looking at the possibility for advice demand in the future, it highlighted the rise in household income and superannuation balances as an example of the Australian population’s wealth.
The median weekly household income is $1,746, while one in four have a weekly household income of more than $3,000, representing more than 2.2 million households. In the superannuation space, net super assets are growing at $2 billion each week.
Managing director Keith Cullen added: “At a time when others have turned their backs on wealth advice and personal risk insurance advice, we have recognised the incredible importance of the profession in supporting Australian families. We will continue to drive paradigm shifts in the licensee-adviser relationship to improve outcomes for practitioners, their clients and our shareholders.
“The outlook for the profession has never been stronger for those who embrace the modernisation of the profession.
“We have only just begun to deliver on our vision of what we know we are ultimately able to deliver to the advice practices and their advisers and staff who continue to entrust us with supporting their professional and commercial endeavours.”
Guy Hedley, chairman, said: “Our premise remains that the supply-demand equation is stacked firmly in favour of financial advice and wealth management networks and their advisers.
“Demand for quality financial and personal risk insurance advice continues to grow as millions more Australians plan for and reach retirement – at a time when adviser supply has been reduced and barriers-to-entry set high – and net superannuation assets are growing at an incredible $2 billion each week.”
Following multiple acquisitions, the firm said its focus has now turned to maximising revenue and profits for the practices it supports
AUTHOR
Laura Dew
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