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St George delivered a record first half cash profit of $603 million today, 6.2 per cent up from the corresponding period last year.
According to the bank credit quality remained sound over the period, with only a 0.01 percent increase in loan impairment expenses as a percentage of average assets. 90-day past due arrears for housing loans improved from 0.36 to 0.24 per cent.
Home loans grew by 10 per cent and deposits grew on an annualised basis of 14 per cent – reducing the bank’s reliance on wholesale funding.
As of March St George’s Tier 1 capital ratio remained strong at 6.97 per cent, approximately $500 million above its regulatory minimum ration of 6.25 per cent.
Managing director and chief executive officer Paul Fegan said: “Against the back drop of a challenging operating environment, the financial position of the Group has been strengthened while delivering record profits.”
Even with some moderation in the economy Mr Fegan said the bank expects to benefit further from a significantly stronger second half.
“The bank’s solid capital position puts us in great shape to capitalise on the profitable growth opportunities that we are seeing across our core businesses,” he said.
Published: 06-05-08
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