St George puts customer satisfaction above profits

While some banks have announced staggering net profit increases for the second half of 2009, St George does not look set to follow.

The bank has announced it will slash its penalty fees on transaction accounts – a move that’s expected to see the bank’s revenue fall by $80 million and its net profit by $56 million this financial year.

According to a report in The Australian Financial Review, the bank’s decision to slash fees was done to improve customer satisfaction and codify its practices with Westpac in anticipation of the completion of the merger on 1 March.

“The merger with St George Bank continues to progress well, with above level growth in lending and deposits,” a statement by Westpac read.

“Approval to move to a single ADI is now almost largely complete”.

While some banks have announced staggering net profit increases for the second half of 2009, St George does not look set to follow.

The bank has announced it will slash its penalty fees on transaction accounts – a move that’s expected to see the bank’s revenue fall by $80 million and its net profit by $56 million this financial year.

According to a report in The Australian Financial Review, the bank’s decision to slash fees was done to improve customer satisfaction and codify its practices with Westpac in anticipation of the completion of the merger on 1 March.

“The merger with St George Bank continues to progress well, with above level growth in lending and deposits,” a statement by Westpac read.

“Approval to move to a single ADI is now almost largely complete”.

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