Deposits surge underpins BankSA profit
BankSA today posted a net profit of $200 million for its 2013 financial year – up seven per cent on last year.
The local bank’s deposit book grew by nine per cent, impaired loans decreased and home lending rose.
BankSA is a division of St George Bank which in turn sits in the Westpac group.
Its financial year ends September 30.
Total revenue rose by three per cent to $604 million and impairment charges decreased by six per cent to just $32 million, the bank reported today.
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Net profit after tax rose to $200 million, from $187 million, core earnings were up six per cent to $318 million, from $301 million.
Total revenue was up three per cent to $604 million, from $586 million.
Operating expenses were up marginally to $286 million from $285 million.
While home lending jumped four per cent, business loans fell, a sign of tough times in the local economy.
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Commercial lending decreased by two per cent to $6 billion.
Home lending increased by four per cent to $13 billion.
Deposits grew by nine per cent to $11 billion.
BankSA Managing Director Jane Kittel said the growth in deposits was a highlight.
“Our strong position in South Australia, competitive savings offerings and our extensive branch network has been integral to the growth in deposits and we’re continuing to see good momentum,” Kittel said.
“We have been leading from the front in home lending, by offering our customers competitive fixed rates and an attractive $1,250 refinance offer, both of which have contributed to our solid performance in this area.”
The bank reported that business confidence is improving in regional areas, where agriculture is proving once again to be an important component of economic growth.
The Bank had received good results in the take up of mobile banking and will extend its reach in that area.
Kittel said customers were increasingly attracted by the convenience and efficiency of mobile banking.
“Customers like being able to do their banking at a time of their choosing, with fast and easy access,’’ she said.
Kittel said the coming 12 months would see BankSA continue to meet customers’ changing needs, particularly around the convenience of mobile banking.
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