(2 November 2004 – Australia) St George Bank chief executive Gail Kelly has predicted double digit earnings per share growth for Australia’s fifth largest bank in both 2005 and 2006.St George posted a A$717 million net profit for the year to September 30, 2004, an 18.3 percent increase on the same period last year.
“We are approaching the 2005 year with confidence as our revenue growth remains strong and we have a proven capability in driving continuous productivity improvements,” Kelly said.
St George said its lending to middle market businesses, which it terms as companies borrowing A$1 to 20 million, had grown by 24 percent on the full year, while commercial lending jumped by 22 percent to $16.6 billion.
She said market share in this segment was coming from customer referrals and cross selling into existing customers.
Kelly reiterated that the bank would lead with a relationship model and would not become embroiled in a price war. She also said she was happy with the level of broker driven loans – which was now 43 percent, up from 39 percent in 2003 – saying it was an “important channel” where the bank had little geographic reach.
Kelly said the bank was ramping up its focus on Queensland and adjusting its strategy to focus on local markets rather than taking a “one size fits all” approach.
The bank is also engaged in a “Best Business Bank” program.