(11 May 2004 – Australia) St George Bank stunned the market when it announced it had lifted its earnings per share growth target from 10-11 percent to 11-13 percent for fiscal year 2004.The positive news came on the back of a half year result that beat analyst expectations.
St George posted a first half net profit of $354 million for the six months to March 2004, compared with $298 million a year earlier, marking an increase of 18 percent.
The result was built on a 19.4 percent jump in total lending receivables to $64.4 billion, a 19.4 percent increase in residential lending to $45.9 billion, a 9.5 increase in retail funding to $34.9 billion, and a 22 percent jump in commercial lending.
Revenue grew 9.5 percent to $1.269 billion.
St George chief executive Gail Kelly said top line growth remained strong, margins remained stable and costs were being well managed.
“St George continues to differentiate itself in terms of its earnings profile and we remain focussed on our low risk organic growth strategy,” Kelly said.
“We have stepped up our focus on customer service, which has always been a key differentiator for St George. We recognise that continuing to improve the bank’s customer service is critical to delivering superior earnings over the long term,” she said.