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Rams helps Westpac increase deposit share

07 May 2013 4:44PM
Westpac's Rams brand has attracted A$1.8 billion in deposits since its launch in May 2012, the bank said last week. Rams attracted A$600 million of that in the six months to March 2013.This is around one seventh of Westpac's overall rise in online deposits over the last half. In total, Westpac said customer deposits increased by $11.9 billion, or three per cent, over the last half.Westpac has lifted its market share of household deposits to 23.4 per cent from a low of around 23 per cent around the time it stretched the Rams brand beyond home loans only. The bank has $136 billion in household deposits.The bank's disclosures also show the cash earnings for Rams - just $3 million in the last half. But this is still better than the $2 million earned by the Bank of Melbourne. Westpac paid around $140 million, pre-tax, for the Rams brand.Bank SA contributed $4 million to the group profit, while St George, as a stand-alone brand, chipped in $49 million.Westpac estimates that Bank of Melbourne grew deposits at five times system and mortgages at three times system over the last half - a measure of the rapid growth for a brand only launched in August 2011.

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