St.George merger benefits defy Westpac expectations

By BN | 09 Dec 2009

First-year benefits from Westpac's merger with St.George were $220m, compared with expectations of $20m, according to a strategy update release on Monday.

The AFR also reported that Westpac predicts $675m in benefits for 2011 financial year.

Much of the savings is from expenses rather than revenue benefits of the merger.

Related stories:

ACCC questions Westpac/St.George decision - ACCC chairman Graeme Samuel has admitted that the timing of the Westpac/St.George merger might have influenced the regulator's decision

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Commented by: Broker at 09 Dec 2009 12:51 PM
220 mil versus 20 mil, just further demonstrates how clueless these exewcs are

Commented by: Keith Bridges at 09 Dec 2009 12:55 PM
With 2000 jobs gone and more outsourcing to India don't think this is much to crow about

Commented by: Broker at 09 Dec 2009 01:15 PM
So that equates to their own internal forcasts being incorrect by about 91%. Gee I'm glad I don't rely on their so called experts to do my budgets!!!

Commented by: kevin collins at 09 Dec 2009 04:20 PM
great, why isnt the share price going through the roof?

Commented by: TH at 10 Dec 2009 10:12 AM

The savings have come from a reductions in expenses. (expenses must mean staff). I have never seen such a poorly organised financial institution with such a lack of enthusiasm, ability and proceedures. Even their conflict resolution "experts" don't give a crap. I will never, ever use St George again (or Westpac for that fact) and will encourage every customer and broker I know to do the same. Put that in your conflict resolution pipes and smoke it.

Commented by: Derek at 11 Dec 2009 12:32 PM
Agreed Kevin Collins, but as an adjunct, you could also ask them why, with an unexpected $200m in their back pocket, were they the first to raise their variable rate above the RBA rate hike, a move which was then emulated across the board by the others.

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