St George reaps diversification rewards

St George Bankhas reaped the benefits of an expanded distribution network, stronger equity markets and renewed investor confidence over the past twelve months with an almost 30 per cent growth of its Wealth Management arm’s managed fund assets to $22.6 billion.

Sealcorp’s funds under administration also performed strongly over the period adding $3.8 billion over the 12 months ending March to total $16.6 billion.

The group, which today announced a net profit of $354 million for the six months ending March 31, also experienced a 9.5 per cent rise in retail funding to $34.9 billion, a $22 per cent rise in commercial lending and a 19.4 per cent jump in retail lending to $45.9 billion.

“St George continues to differentiate itself in terms of its earnings profile and we remain focused on our organic growth strategy… Top line growth remains strong, the margin remains stable and costs are being well managed,” St George chief executive officer Gail Kelly says.

The group’s total assets now stand at $66.3 billion — a 15.7 per cent increase on the $57.3 billion in assets as at the end of March 2003.

As for the half year profit announcement, the $354 million figure was an 18.8 per cent increase on the corresponding 2003 period.

The 2004 figures were buoyed by a 9.5 per cent increase in total revenue to $1.3 billion, and an 11.7 per cent rise in net income to $794 million.

The bank also declared a fully franked interim dividend of 60 cents up from 45 cents a year ago and expects its final dividend to equal or improve on the interim dividend.