St George Bank (SGB) Share Trading Update

Submitted by Craig Strzelecki on 15 March, 2007 - 17:54

St George Bank (SGB) has a Neutral 1 share trading recommendation and a price target of $34 per share from analyst UBS. The bank SGB has announced a significant management restructure of its executive team following the retirement of John Loebenstein (Group Exec IT & CIO). This includes the consolidation of the retail businesses under Paul Fegan and back office operations under Peter Clare. The analyst see these changes as logical to improve revenue capability and cost efficiency. A new division called "Retail Bank and Wealth Management" has been created and will be run by Paul Fegan. This effectively combines all front office activities (sales, products & marketing) for personal banking and wealth mgmt. Geoff Lloyd will continue to run WM reporting to Paul Fegan.

St George Bank will consolidate all of its back office operations (IT and processes) under Peter Clare. He has significant experience at running such operations at CBA and is likely to bring a renewed cost vigour. David Gall will take over Peter Clare's prior position of Group Strategy. The share analyst see SGB as a premium play given (1) revenue delivery (2) M&A appeal (3) register/liquidity. This is partially offset by (1) low cost-to-income (2) accounting quality (3) capital stretch (4) div payout stretch. However, SGB is not cheap at 14.2x 2008E (10% sector premium) and a healthy 5.0x NTA.

St George Bank Limited is listed on the Australian Stock Exchange (ASX) under stock code SGB. You can view their investor website here. SGB was listed on the ASX on 2 July, 1992. John M Thame is the chairman of St George bank and the managing director is Gail Kelly. The bank provides banking and other financial services, in particular Retail Banking, Commercial Banking and Group Treasury and Capital Markets, and Funds Management. St.George is Australia's fifth largest bank and one of the top 15 publicly listed companies in Australia, employing over 8,500 people. Founded in 1937 as a housing based financial institution, St.George built a reputation as Australia's foremost building society, before achieving full banking status in July 1992. Its national operations span all aspects of the financial industry including retail banking, institutional & business banking, and wealth management. Find out the meaning of the recommendations in this primer. Browse for other stockbroker recommendations. You can use Instalment Warrants to trade SGB. Check your charts and good luck with your share trading!

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