May 3 (Bloomberg) -- Australian bank stocks gained after St.George Bank Ltd., the nation's fifth largest lender, raised its profit forecast for the year. BHP Billiton and Rio Tinto declined.

The S&P/ASX 200 Index slipped 0.8 point to 4010.50 as of 11:44 a.m. in Sydney. About 10 stocks fell for every seven that rose. The index has fallen 6 percent from its high, set March 21, two days before the U.S. Federal Reserve raised its benchmark interest rate, sparking concern global growth will slow.

New Zealand's NZSX 50 Index gained 0.2 percent to 3005.65 as of 1:48 p.m. in Wellington. Telecom Corp., which accounts for a quarter of the benchmark index, rose.

St.George Bank Ltd. climbed 37 cents, or 1.5 percent, to A$25.30. The company forecast full-year earnings per share growth of 11 percent, up from 10 percent previously and said first-half profit rose 18 percent to a record after it loaned more to businesses and stock market gains boosted wealth management earnings.

National Australia Bank Ltd. (NAB AU), the biggest Australian lender, added 16 cents, or 0.5 percent, to A$29.55. Westpac Banking Corp. (WBC AU), the fourth-biggest bank, rose 8 cents, or 0.4 percent, to A$19.52.

BHP Billiton fell 19 cents, or 1.2 percent, to A$16.25. Rio Tinto sank 33 cents, or 0.8 percent, to A$42.07.

To contact the reporter for this story: Stuart Kelly in Sydney skelly22@bloomberg.net

Last Updated: May 2, 2005 21:51 EDT