St George puts off asset manager buyouts
St George will not be scouting for asset management acquisitions in the near future, although it continues to look for opportunities.
St George chief executive Ed O'Neal's comments broadcast on the Nine Network yesterday confirmed the bank has been looking at opportunities to acquire an asset management businesses.
However O'Neal says it was unlikely the bank would find a cheap funds management business to drive its expansion into that market.
According to O'Neal such purchases have high multiples and St George was not keen to pick up acquisitions which may dilute its position.
Only four days ago the bank announced it had posted a record $211 million in interim net profits which represents a jump of 25 per cent, which sent the bank's share price soaring to a record high of $14.88. The bank has also recently acquired KPMG Financial Services.
O'Neal said St George was not under any pressure to buy any businesses to succeed in its business strategy, but did acknowledge that the bank plans to add enough value to the share price that would reward shareholders with "a big premium" if a takeover is mounted for St George.
St George has flagged financial services as an important area for its growth. O'Neal believes banking now includes investment services.
He said all St George's clients wanted investment advice and are willing to make managed investments. St George's customer base now totals 2.6 million.
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