AUSTRALIA'S ST GEORGE POSTS 18.3 PCT INCREASE IN YR NET PROFIT.

SYDNEY, Nov 1 Asia Pulse - Australia's fifth largest bank, St George Bank Ltd (ASX:SGB), said today it was targeting 10 per cent earnings per share growth in 2004/05 after a solid increase in full year earnings.

St George reported net profit available to ordinary shareholders of A$717 million (US$535 million) for the year to September 30, 2004, up 18.3 per cent on the prior corresponding period and at the higher end of market expectations - which ranged from A$694 million to A$722 million.

The company's net profit before preference dividends and after good will and significant items was A$767 million against A$658 million in the previous year.

St George chief executive and managing director Gail Kelly said she expected interest rates to remain stable through 2005 while home loan sector growth slowed, potentially leading to more competition in the industry.

However, Ms Kelly said the bank expected to keep pace with residential lending and be ahead of system growth in commercial lending.

"We are approaching the 2005 year with confidence as our revenue growth remains strong and we have a proven capability in driving continuous productivity improvements," Ms Kelly said.

"Key to our differentiation is the focussed execution of our strategy of delivering superior service to our customers in our chosen markets."