Exposures to entities associated with Centro Properties Group...

Exposures to entities associated with Centro Properties Group and Allco Finance Group Ltd continued to perform and therefore did not require specific provisions, St George said.

In the home loan book, the loan impairment expense and 90-day past due arrears for housing loans were within an acceptable range and "well below" long term averages, St George said.

The Allco exposure has fallen to $37 million from $60 million as a result of asset sales.

Retail deposit balances grew at an annualised rate of 18.9 per cent in the first ten months of the year, which St George attributed to a "focus on product offering" and a flight to quality in tough times.

Residential receivables growth slowed to ten per cent annualised.

St George said it was on track to grow broadly in line with system, with a focus on profitable segments.

Middle market receivables growth also slowed, but continued to be strong at 30.1 per cent annualised.

Managed funds balances fell 15.6 per cent, reflecting a downturn in investment markets.

St George said it had 15 per cent per cent of its committed term funding maturing in the next six months. The average cost of its funding at March 31 was 6.31 per cent compared to an average of 6.28 per cent for the major banks.

Debt funding is more expensive for St George with its A credit rating while the majors have AA ratings.

"Notwithstanding the success to date in completing the group's funding program, access to markets and pricing will continue to be challenging for all sector participants due to the expected volatility and possible worsening of the funding markets," St George said.

"It is difficult to accurately forecast the impact due to the uncertainty going forward."

St George said any recommendation of the Westpac offer was subject to an independent expert's report. A scheme booklet is expected to be issued to shareholders in late September before a shareholder vote in early November.