Westpac wealth management unit BT Financial Group (Australia) has reported loss of A$305m ($213.1m) in the first half of 2019.
The performance was hit by customer refund and restructuring expenses of A$620m.
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The unit’s performance was also said to be affected for ceasing to benefit from grandfathered commissions.
Net interest income at the division however, rose 1% to A$297m from A$294m.
Non-interest income at the wealth arm slipped 84% to A$142m from A$881m.
The unit’s net operating income in the six months to March 2019 stood at A$439m, a 63% slump from A$1.17bn in the previous year.
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By GlobalDataOperating expenses surged 48% to A$872m on a year-on-year basis.
A couple of months ago, Westpac announced plans to quit the financial advice business.
Under the plan, the remaining BT Financial Group units will be consolidated into Westpac’s consumer and business divisions.
At the same time, BT Financial will cease to operate as a standalone unit.
Group results
Overall, the banking group reported cash earnings of A$3.29bn in the first half of 2019.
This was a 22% plunge from A$4.25bn last year, driven by wealth restructuring.
The group’s statutory net profit was A$3.17bn, a 24% slump from the previous year.
However, the group still retained its dividend of 94 cents.
Westpac Group CEO Brian Hartzer said: “This is a disappointing result reflecting weaker business conditions and the bank dealing decisively with outstanding issues, including remediation and resetting our wealth strategy.
“The past six months has been a turning point for the bank. We are proactively addressing legacy issues while improving our products and services to ensure they deliver the right customer outcomes.
“We’re exiting personal financial advice to focus on the parts of our wealth business where we have a competitive advantage, and we are delivering significant cost savings by simplifying our business.”
