Westpac reports fall in active advisers on BT Panorama

In its half-year results released on Monday, Westpac reported that the number of active advisers on BT Panorama had fallen from 6,142 in 2H22 to 6,028 in 1H23.

While down by 2 per cent versus the previous half, the bank noted that this figure was “broadly flat” compared to 1H22, when 6,059 active advisers were on BT Panorama.

Westpac declared that BT Panorama had $102.1 billion in funds under administration (FUA) in 1H23, an increase of 6 per cent on 1H22 but 3 per cent lower than in 2H22.

Net outflows of $0.5 billion were recorded, while improving equity markets and other movements helped FUA increase by $6.7 billion.

During the half, Westpac said that it had made “continuous investment in digital capability, feature improvements and enhancements based on adviser and member feedback”.

Managed accounts FUA on BT Panorama continued to increase, reaching $13.7 billion in 1H23 or 26 per cent higher than in 1H22 and 21 per cent higher than 2H22.

Westpac’s platforms business had an average FUA of $130.8 billion over 1H23, 3 per cent higher than 2H22, supported by higher equity markets but partly offset by net fund outflows.

Deposits were up 7 per cent to $7.4 billion, with the bank noting that customers had shifted their asset allocation to higher interest-earning term deposits.

Overall, for the half, Westpac reported a net profit of $4.0 billion, a 22 per cent increase on the same period a year earlier.

The bank reported that its return on equity was up 205 basis points on the previous period to 11.3 per cent, while earnings per ordinary share were up 26 per cent to 114.2 cents.

“Our first half result reflects the progress we’ve made in becoming a simpler, stronger bank. Disciplined cost and margin management has lifted our return on equity and allowed us to increase dividends to 70 cents per share,” said Westpac chief executive officer Peter King.

“We’ve grown in a disciplined way in mortgages, performed well in business and institutional banking and stayed the course on risk management and simplification.”

Mr King said that Westpac had further strengthened its balance sheet, with a CET1 ratio of 12.3 per cent and funding and liquidity ratios “well above regulatory requirements”.

“Our credit quality remains sound with little change in the level of stressed assets, however, we boosted credit impairment provisions this half reflecting the forecast tougher economic outlook,” he said.

“Our balance sheet strength sees us well positioned to support customers to grow and navigate any future economic challenges.”

In the consumer segment, net profit grew 7 per cent to $1.8 billion. Net loans were reported to have increased by 3 per cent to $480 billion while deposits grew by 6 per cent to $294 billion.

Net profit in the business segment jumped 256 per cent to $851 million, with net loans up by 6 per cent to $86 billion.

Westpac Institutional Bank posted an 88 per cent rise in net profit to $574 million, driven by non-interest income which rose by 19 per cent to $704 million. Net loans in the segment were up by 14 per cent to $85 billion and deposits were up 8 per cent to $113 billion.

Westpac’s group net interest margin (NIM) lifted 5 basis points (bps) to 1.96 per cent while its core NIM, excluding notable items and treasury and markets, rose 20 bps to 1.90 per cent. Mr King noted that despite the rise, NIM “still remains lower than historic levels”.

Net interest income increased 10 per cent to $9.1 billion, reflecting the increase in NIM as well as a 7 per cent increase in average interest-earning assets.

Meanwhile, the bank’s operating expenses were 7 per cent lower at $5.0 billion, which was said to have been partly driven by businesses sold. Excluding notable items and the impact of businesses sold, operating expenses were down 1 per cent.