Wide Bay Australia delivered net profit of $8.2 million for the six months to December 2008, up from $8.06 million for the corresponding period.Due to increased wholesale funding costs, the cost to income ratio increased for the period under review to 55.3 per cent from 53.6 per cent in financial year 2007.Ron Hancock, managing director at Wide Bay, said that general growth within the organisation and the ability to maintain margins 'reasonably well' was the main driver behind the profit lift, with the merger progressing smoothly."We expect the merger [with Mackay Permanent Building Society] to add a minimum ten per cent per share, or 80 to 84 cents for financial year 2009."Lending volumes increased 18 per cent to $266 million over the corresponding period, helped by the strong geographical branch base in Queensland. Sydney and Melbourne branches were reported to have demonstrated strong growth."We have an excellent branch representation from the Gold Coast through to Cairns, and into the central highlands."Within the last twelve months, Wide Bay has opened three branches in Townsville and two in Cairns, bringing the branch network to around 45.Hancock anticipates the new branches to be profitable in around three years.Due to the current takeover of Mackay Permanent Building Society, Standard & Poor's placed Wide Bay on a 'credit watch negative' last year while reviewing the company, and S&P have now affirmed the company's rating as BBB-. "We would certainly like to see it (the rating) come back to a BBB or a BBB+, we have been talking to them on a regular basis and they are reviewing the structure now."