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St George Reports Increase In Business Loans
Australian Bank, St George Bank Ltd, have reported a rise in their higher lending to small and medium-sized businesses. St George is Australia's fifth-largest bank. Their second-half profit has risen over twenty percent.
Businesses in Australia have increased their demand for credit by 17.4 percent. In the past two years, St George has added approximately 200 bankers for business customers. Loans to companies have increased by almost twenty percent to A$23.9 billion. Seven new business-banking branches were opened in fiscal 2006. Their loans to small and medium-sized businesses rose 24 percent to A$19 billion.
St George's increase in the number of loans given to small and medium-sized businesses, and its increased share of the industry, has changed its credit rating by Moody's Investors Service. Moody's changed the bank's credit rating from A2 to A1. A1 is the fifth-highest rating given by Moody's.
St George Bank's share price has also risen. Their second-half dividend is 77 cents a share. Last year, it was 70 cents a share.
Changes made to St George Bank recently include the purchase of a margin lending business and the selling of a mortgage lending portfolio. St George Bank bought HSBC Holdings Plc's margin lending business in Australia in August. The business makes loans to share traders. In the same month, St George and a venture partner sold GE Money, in New Zealand, a mortgage lending portfolio. They have also expanded into Queensland, Victoria and Western Australia.
The rise in demand for credit has also given Australia & New Zealand Banking Group Ltd record earning. When Westpac Banking Corp. and National Australia Bank Ltd report their earnings, the rise in demand for credit may also show a profit there.
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