AUSTRALIA'S ST GEORGE BANK POSTS 17.9 PCT RISE IN YR NET PROFIT.

SYDNEY, Nov 1 Asia Pulse - St George Bank (ASX:SGB) chief financial officer Steve McKerihan says the bank has achieved growth in its key New South Wales (NSW) lending business despite broader weakness in the state economy.

Australia's fifth largest bank today booked a net profit for 2005/06 of $A1.048 billion ($US810.16 million), up 17.9 per cent on the previous year's restated profit.

St George reported a record cash profit - the industry's preferred measure of profitability - of $A1.026 billion, up 14.5 per cent on the previous year.

Mr McKerihan said the bank had also supplemented its core NSW market with expansion into other state markets.

"During the year, one of the concerns that some in the market had is what impact would the NSW economy have on St George's performance," Mr McKerihan said.

"I think what has been pleasing for us is that we have achieved both strong performance within NSW and seen growth in market share in residential lending and in commercial lending in NSW."

"But we've also supplemented that with very good growth in the other states as well."