(3 November 2006 – Australia) St George Bank has posted a record cash profit of A$1.02 billion for the full year to September 2006, with the bank’s middle market business a “standout” performer.The bank’s earnings per share growth was 13.1 percent whilst return on equity improved to 22.9 percent.
St George managing director Gail Kelly said all business divisions had performed well, growing revenue by nine percent, and that the bank’s cost to income ratio was an industry leading 44.0 percent.
The bank assuaged concerns of a flat NSW economy undermining its performance, by growing residential lending by 12.2 percent to A$62.7 billion.
Middle markets receivables increased 24 percent to A$19.0 billion, growing at above system levels in NSW and making strong gains in Queensland, Victoria and Western Australia where the bank is expanding its footprint.
“The middle market team also maintained industry leading customer satisfaction and advocacy, and increased average products per customer,” the bank said.
Retail deposits grew 10.7 percent and managed funds performed strongly, growing 20 percent over the year.
The bank said it was targeting 10 percent EPS growth for 2007 and 2006.