Gone are the days when a bank was just a place to deposit or borrow money. With interest margins at very low levels banks have had to look at other areas to generate income.
On Friday BankWest advised the ASX that it had acquired Terrace Counselors, an unlisted financial advisory company.
The acquisition has been made to bolster TrustWest, a subsidiary of BankWest. TrustWest will now start to integrate its products and services into the bank’s branch network.
This type of diversification has paid off, with non-interest income in the six months to the end of August being $80.2 million, a rise of 30%; attributable largely to growth in funds management.