Home Building Society ups half-year profits 43% to $7.2m

Perth-based financial services group Home Building Society Ltd has announced a 43 per cent increase in half year net profit to 7.2 million, saying the company was on track for a strong full-year result.

The company's underlying earnings rose 98 per cent to $10.1 million, while revenues from ordinary activities rose almost 100 per cent to $109 million.

According to a company announcement, the earnings increase came on the back of strong activity through Home's core banking and property arms and first contributions from the successful integration of StateWest Credit Society.

"Home expects a strong second half for fiscal year 2006-2007 and is expecting underlying earnings for the second half to be up 30 per cent on the first half," the announcement said.

Home managing director Greg Wall said that during the first half a strong focus was placed on customer retention.

"With the vast majority of integration activities now completed, we will also see strong synergy benefits flowing through in the second half and into fiscal year 2007-2008," he said.

In May 2006 the merger with StateWest was delayed after StateWest was forced to republish its demutualisation document. This allowed StateWest members to obtain a higher payout courtesy of an increase in Home's share price since the proposal was first made in August 2005.

Earnings per share fell 27.7 per cent to 22.9 cents each as a result of the 15.1 million shares issued under the StateWest merger

The combined entity has funds under management of more than $4 billion.