Mixed profits for SGB
(7 May 2008 – Australia) St George bank has released a positive underlying profit result for the first half of 2008 which has been dragged down by global credit turmoil.
The net profit for the bank showed a decrease in profits by 10.1 percent, to $514 million from $572 million one year earlier.
The cash profit however, which shows the smoothed performance of the business without significant items and other volatility actually recorded a rise of 6.2 percent to $603 million from $568 million.
Even this was not quite to market expectations, with many analysts expecting cash profits to be $16 million higher at $619 million for the first half.
The bank said that while overall credit quality across all lending portfolios remains strong, a small number of the bank’s middle market and margin lending clients have been significantly impacted by market volatility and international credit turmoil.
St George has recognised $93 million of significant items for the half. This comprises a $54 million gain from the sale of Visa, a $30 million restructuring charge, and a $117 million tax expense.
Total provisions and reserves for loan impairment rose by 21.7 per cent to $550 million.
Underlying performance is strong, as retail deposits grew on an annualised basis by 14 percent to $51.1 billion, while loans for the Middle Market business grew by an annualised 31 percent.
The cash profit however, which shows the smoothed performance of the business without significant items and other volatility actually recorded a rise of 6.2 percent to $603 million from $568 million.
Even this was not quite to market expectations, with many analysts expecting cash profits to be $16 million higher at $619 million for the first half.
The bank said that while overall credit quality across all lending portfolios remains strong, a small number of the bank’s middle market and margin lending clients have been significantly impacted by market volatility and international credit turmoil.
St George has recognised $93 million of significant items for the half. This comprises a $54 million gain from the sale of Visa, a $30 million restructuring charge, and a $117 million tax expense.
Total provisions and reserves for loan impairment rose by 21.7 per cent to $550 million.
Underlying performance is strong, as retail deposits grew on an annualised basis by 14 percent to $51.1 billion, while loans for the Middle Market business grew by an annualised 31 percent.
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