Australian St George Bank's wealth management unit reported profit before tax down for the 12 months to September 2008, with a fall of 8 per cent to A$194 million ($133 million) from A$210 million last year.

The division comprises Asgard, Securitor, Advance Asset Management, licensee services, margin lending, direct shares, private banking and life and general insurance.

But the group continued to achieve positive net flow in managed funds during the year, with the reduction in balances entirely attributable to market movements: managed funds were A$40.6 billion, down from A$49.7 billion in September 2007.

Cash investment accounts held with the bank by Asgard investors rose 32 per cent to A$4.9 billion from A$3.7 billion last year and Asgard's integrated financial planning and practice technology AdviserNETgain increased the number of participating practices by 75 per cent to 245.

The group's shareholders will vote on a merger deal between St George and Westpac Bank next month, recommended by the board, which would leave St George shareholders with 28 per cent of the merged entity.