SGB Cash Profit jumps
(29 October 2008 – Australia) In what should be its last individual full year result, St George has posted a strong cash profit, while net profit only just grew after significant items.
St George Bank announced a cash profit result of A$1,321 million, up 13.9 percent from 30 September 2007.
The statutory net profit of the bank, including significant items and preference share dividends, rose by just 0.9 percent to A$1,174 million from A$1,163 million last year.
The full year cash profit result includes three material non-recurring items.
These were a profit on sale of Visa shares and the receipt of a payment from AIG in relation to insurance arrangements, offset by the establishment of an economic overlay within the group’s Collective Provision for Impairment.
St George’s bad and doubtful debts expense rose to A$291 million for the year.
The before tax profit varied by division for St George; the retail bank recorded a 7 percent increase in before tax profit, institutional and business banking jumped by 27 percent, BankSA was up 13 percent, while Wealth Management dropped 8 percent.
St George grew its retail deposit balances by 20.0 percent to A$57.3 billion from A$47.8 billion last year, compared to system growth of 14.8 percent.
The bank performed well in the Middle Market segment, with receivables growth of 29.3 percent to A$30.8 billion since 30 September 2007.
As a result of this record profit, St George’s board has increased the final dividend from 86 cents in September 2007 to 94 cents. In addition, the Board has also declared a special dividend of 31 cents, making a total fully franked dividend of 125 cents for the second half of 2008.
The statutory net profit of the bank, including significant items and preference share dividends, rose by just 0.9 percent to A$1,174 million from A$1,163 million last year.
The full year cash profit result includes three material non-recurring items.
These were a profit on sale of Visa shares and the receipt of a payment from AIG in relation to insurance arrangements, offset by the establishment of an economic overlay within the group’s Collective Provision for Impairment.
St George’s bad and doubtful debts expense rose to A$291 million for the year.
The before tax profit varied by division for St George; the retail bank recorded a 7 percent increase in before tax profit, institutional and business banking jumped by 27 percent, BankSA was up 13 percent, while Wealth Management dropped 8 percent.
St George grew its retail deposit balances by 20.0 percent to A$57.3 billion from A$47.8 billion last year, compared to system growth of 14.8 percent.
The bank performed well in the Middle Market segment, with receivables growth of 29.3 percent to A$30.8 billion since 30 September 2007.
As a result of this record profit, St George’s board has increased the final dividend from 86 cents in September 2007 to 94 cents. In addition, the Board has also declared a special dividend of 31 cents, making a total fully franked dividend of 125 cents for the second half of 2008.
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