St George grows residential lending by 26% in WA

Residential loans from St George Bank Ltd in Western Australia have grown 26 per cent over the past year to a total of $3.8 billion,with the bank booking a net profit for 2005-2006 of $1.05 billion today, up 14.5 per cent.

Its result was up by 17.9 per cent when the previous year's profit was adjusted for the impact of new international accounting standards.

The bank's cash profit - the industry's preferred measure of profitability - was a record $1.03 billion, up 14.5 per cent on the previous year and above the consensus market forecast.

In WA, the state demand growth of 10.4 per cent for 2005-06 was more than double the national figure.

Business lending in the middle market grew by a very strong 39 per cent to $1.8 billion in the year to 30 September 2006, at a rate of over three times the industry average. At 26 per cent, the growth in residential loans is double the industry average.

St George general manager of WA Martin Barrett said the bank was looking forward to further growth.

"We outperformed our targets for the last financial year in middle market business lending, retail loans and deposits, so we've raised the bar for the year ahead," he said.

"What is really exciting is that we have now established ourselves as an alternative to the major banks in Western Australia. Next year we are targeting more than double system growth in middle market business lending and twice the industry average in retail loans and deposits."