Solid performance for SGB
(15 August 2008 – Australia) In the midst of a merger and recent market provisions by competitor banks, St George has given a solid performance update to the first ten months of its financial year.
St George Bank announced in the performance update that the bank is on track to meet its earnings per share growth target of 8-10 percent in 2008.
The profit for St George (Cash profit after tax excludes hedging and non-trading derivatives volatility and significant items) was $1,073 million for the ten months to 31 July 2008, 12.5 percent ahead of the same result to July 2007.
St George’s managing director & CEO, Paul Fegan said that, against the back drop of a challenging operating environment, St George continues to perform well with strong growth across its core businesses and product lines, sound asset quality and effective cost control.
Fegan also reiterated that the bank has completed 100 percent of its 2008 term wholesale funding requirements and already raised $3.3 billion of the estimated $11-$12 billion term wholesale funding requirements for 2009.
Growth of retail deposit balances for the ten months ended 31 July 2008 was 18.9 percent annualised and exceeds growth in retail lending, providing a funding offset.
Overall credit quality remains very good and St George’s balance sheet is conservative, with a low risk mix of businesses focused predominantly in Australia with no offshore operations.
St George said that they also continue to have no exposure to US or domestic sub-prime lending, CDOs or hedge funds.
The profit for St George (Cash profit after tax excludes hedging and non-trading derivatives volatility and significant items) was $1,073 million for the ten months to 31 July 2008, 12.5 percent ahead of the same result to July 2007.
St George’s managing director & CEO, Paul Fegan said that, against the back drop of a challenging operating environment, St George continues to perform well with strong growth across its core businesses and product lines, sound asset quality and effective cost control.
Fegan also reiterated that the bank has completed 100 percent of its 2008 term wholesale funding requirements and already raised $3.3 billion of the estimated $11-$12 billion term wholesale funding requirements for 2009.
Growth of retail deposit balances for the ten months ended 31 July 2008 was 18.9 percent annualised and exceeds growth in retail lending, providing a funding offset.
Overall credit quality remains very good and St George’s balance sheet is conservative, with a low risk mix of businesses focused predominantly in Australia with no offshore operations.
St George said that they also continue to have no exposure to US or domestic sub-prime lending, CDOs or hedge funds.
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