Banking News

HBOS wealth division growing strongly

HBOS wealth division growing strongly

(3 April 2007 – Australia) St Andrew’s Australia, the wealth and insurance division of HBOS Australia, has posted a pre-tax profit of A$22.6 million, up 109 percent on the 2005 figure. St Andrew’s managing director John Van Der Wielen said the division was significantly increasing its profits each year despite ongoing investment in the business.

St Andrew’s began operating in Australia in 1998 and two years ago its profit was just A$5.7million.

In 2006 sales of insurance products as measured by Gross Written Premiums (GWP) grew 36 percent while funds under management and advice increased by 18 percent to A$479 million.

The acquisition of Whittaker Macnaught means the division has funds under management of more than A$2 billion.

"In the past two years we have more than quadrupled our profit while acquiring RACV Financial Services and investing significantly in resources and infrastructure to support our aggressive growth plans," Van Der Wielen said.

He said St Andrew’s was well positioned to take its share of the strong performing superannuation sector through its BankWest network, RACV alliance and Whittaker Macnaught acquisition.

"Our wealth division performed strongly in 2006 with 86 percent increase in revenue over 2005, and commission income nearly doubling compared to the previous year."

Van Der Wielen said St Andrew’s would look to accelerate its growth in 2007 by expanding the range of its existing financial institutions and supporting the aggressive growth plans of HBOS Australia’s BankWest business.
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