ferret's stock to watch: wide bay australia ltd

Ferret's Stock to Watch: WIDE BAY AUSTRALIA LIMITED
09:40, Wednesday, 18 May 2005

Sydney - Wednesday - May 18: RWE Australian Business News
*****************************

Wide Bay Australia (WBB), the highly successful building society,
domiciled in Bundaberg, northern Queensland, may well become a regional
bank.

The company has been expanding its offices along the east coast
at an impressive rate, taking on most of the functions of a full fledged
bank.

This is the way St George Bank started out from a building
society base in the last decade.

Wide Bay yesterday indicated it is expecting an annual net profit
of around $12 million, up 22 per cent on 2003/04.

Based on the board's earlier advice of an increased dividend
payout ratio in relation to the amount of capital held, it is
anticipated the final dividend will be around 22c a share, bringing
total payout for the year to 41c.

The forecast result reflects strong growth in the building
society's operations while Wide Bay Australia continued to maintain an
"excellent" cost-to-income ratio in the low 60 per cent range.

Managing Director Ron Hancock Mr Hancock said the results
reflected strong growth in the society's operations.

"The opening of a new branch in Parramatta in 2004 has seen a
significant contribution from New South Wales and the extension of our
lending operations in Melbourne is also contributing.

"We are focussing on a steadily controlled expansion of its own
branch network.

"In addition to Parramatta, we have just opened a new branch at
the Allenstown Shopping Centre in south Rockhampton.

"We have also completed negotiations for premises at Mt Gravatt
in Brisbane, where it is anticipated that a new branch will be open in
July 2005, and a further branch will be opened in Camberwell in Melbourne
in approximately October 2005.

"These branches will have full retail banking facilities as well
as full time loans consultants, he disclosed.

Mr Hancock said Wide Bay's branch expansion has also assisted in
offsetting some slowing of lending in the society's traditional areas of
operation.

SHARE PRICE MOVEMENTS
*********************

Shares of Wide Bay yesterday rose 2c to $6.82. Rolling high for
the year has been $7.24 and low $6.40. Dividend is 19c a share to yield a
handy 5.37 per cent. PE is 17.02 and EPS 40.1c

Chairman John Pressler told shareholders at the annual meeting
that last year's result was double digit growth.

He said the company was continuing to generate a strong profit
performance in the current financial year.

"As forecast in our Annual Report, a substantial contribution to
this year's profit results will be made by our captive mortgage insurer,
Mortgage Risk Management, which has produced strong trading results in
keeping with our budget forecast.

Mr Pressler said the potential market for Wide Bay Australia
remains very large and "we have the advantage of being very flexible in
our approach and responses, " he added.

"We are also exploring additional initiatives with lending
products which should leave Wide Bay Australia well positioned to take
advantage of increased lending opportunities," he said. .

"Wide Bay Australia's retail lending operations remain the basis
for a large percentage of our lending and we have not become overly
dependent on brokers.

"We value the associations that we have formed and can, if
desired, develop new relationships to strengthen our lending operation.

"Our overall loan book continues to grow steadily.

"To manage the approval and processing of loans, we have spent
considerable funds and resources on the development and installation of a
new electronic loans processing system.

"The system will also provide greatly increased means to handle
any increased lending volume that we may be able to achieve in the
future.

"While our operating margins are constantly under pressure - we
are continually reviewing our products, structures and systems to
maximise our returns.

"We are confident that given Wide Bay Australia's position in the
market, our experienced team and our track record of performance that we
can maintain our lending, continue to grow our profits and increase
returns to shareholders", the chairman declared.


BACKGROUND
**********

Wide Bay Australia Ltd helps everyday Australians achieve home
ownership and to continue building their wealth using the equity in their
homes.

For investors, Wide Bay Australia provides financial
opportunities that offer attractive and secure returns.

The company's extensive range of personal banking services
includes home loans, term and on-call deposits, insurance and financial
planning services.

Operating in Brisbane, Sydney, Melbourne, Adelaide and throughout
regional Queensland, Wide Bay Australia's innovative business is based on
a foundation of strength, consistent growth and profitability.

Wide Bay Australia has its own wholly-owned mortgage insurer.

As part of the company's commitment to prudential excellence all
loans are insured, providing protection for depositors and investors. In
addition, Wide Bay's 'AAA' rated mortgage loan securitisation program
provides a source of additional funding for the continued growth of the
group's loan book.

Wide Bay Australia is one of Australia's larger non-bank Approved
Deposit Taking institutions, regulated under APRA (Australian Prudential
Regulation Authority), the group responsible for the prudential
supervision of banks, building societies and credit unions.

ENDS

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I don't hold WBB