St George to beef up capital

The new CEO at St George Bank, Paul Fegan, has jumped into the saddle and only one day into the job announced a $1.15 billion raising to boost its capital holdings. In a statement released after the close of trading yesterday the bank said that it was cancelling a previous plan to raise $458 million through underwriting its dividend reinvestment program. Instead up to $750 million worth of new shares will be issued and a separate initiative to raise $400 million should be finalised by the end of the year. Mr Fegan said that the extra capital is needed so that the bank has plenty of headroom to grow.