SGB performance update
(1 July 2008 – Australia) St George bank has released an update on its performance for the first calendar quarter of 2008.
Presenting at the UBS Australian Financial Services Conference 2008, chief executive, Paul Fegan, detailed the current status of St George, including funding, credit quality and outlook for the bank.
The bank said that it has now completed 100 percent of its 2008 financial year term wholesale funding requirements and has already raised 10 percent of its estimated $11-$12 billion term wholesale funding requirements for 2009.
Credit quality for St George’s retail bank remains excellent while overall credit quality in business banking remains strong. Circa 95 percent of the portfolio is secured with greater than 80 percent secured by property.
St George’s retail deposit balances are continuing to experience positive growth. Growth for the eight months ended 31 May 2008 was 12.4 percent annualised.
On the Westpac merger proposal, the St George Board reiterated its intention to recommend the merger proposal subject to it remaining in the best interests of St George shareholders, including an independent report and no further offers coming through.
Looking forward, St George said that their underlying margin outlook for the financial year 2008 is expected to be less than 10 basis points.
St George finally said that it remains on track to meet its EPS growth target of 8-10 percent in 2008. St George remains on track to meet its other targets around cost to income, capital, credit quality and customer satisfaction as outlined in its 2008 interim results.
The bank said that it has now completed 100 percent of its 2008 financial year term wholesale funding requirements and has already raised 10 percent of its estimated $11-$12 billion term wholesale funding requirements for 2009.
Credit quality for St George’s retail bank remains excellent while overall credit quality in business banking remains strong. Circa 95 percent of the portfolio is secured with greater than 80 percent secured by property.
St George’s retail deposit balances are continuing to experience positive growth. Growth for the eight months ended 31 May 2008 was 12.4 percent annualised.
On the Westpac merger proposal, the St George Board reiterated its intention to recommend the merger proposal subject to it remaining in the best interests of St George shareholders, including an independent report and no further offers coming through.
Looking forward, St George said that their underlying margin outlook for the financial year 2008 is expected to be less than 10 basis points.
St George finally said that it remains on track to meet its EPS growth target of 8-10 percent in 2008. St George remains on track to meet its other targets around cost to income, capital, credit quality and customer satisfaction as outlined in its 2008 interim results.
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