St George performance in line with expectations

Australian bankers St George's managing director Gail Kelly says the bank's performance in the first two months of its financial year was in line with expectations.

"Two months into the year we are on track for 2006," Ms Kelly told shareholders at the bank's annual general meeting.

She also reaffirmed the bank's targets for earnings per share growth of 10 per cent for the current financial year and next.

Ms Kelly also said the bank was targeting for growth in home loans in line with the industry average of about 12-13 per cent.

St George also expects continued strong growth in its retail deposits.

It also expects new inflows for its wealth management business to exceed the industry average.

"2005 has been a very good year and we enter 2006 with confidence," Ms Kelly said.

Ms Kelly also said the bank expected growth in its "middle market" business loans, that is loans above A$1 million ($1.1 million), to deliver double system which is expected to be eight to 10 per cent.

- AAP