SUNCORP INCREASES HALF YEAR PROFIT, DIVIDEND

SUNCORP INCREASES HALF YEAR PROFIT, DIVIDEND
SUNCORP has reported half year net profit after tax of $537 million for the six months to 31 December, up from $530 million in the previous corresponding period, and an increased interim dividend of $0.33 per share.

Suncorp CEO and Managing Director Michael Cameron (pictured) says that over the past 12 months, the group has been significantly repositioned.

"We have achieved a lot, and the next 12 months will be about settling into a different way of working, and fully embedding the plan into the organisation to enable disciplined execution of our strategy," he says.

The result included natural hazard claims costs of $350 million (HY16: $362 million), investment earnings of $79 million (HY16: $133 million), reserve releases of $131 million (HY16: $137 million) and a loss on sale of Autosure of $25 million.

The insurance section of the Brisbane-based business increased NPAT by 42.5% to $369 million due to top line growth, lower claims costs and disciplined expense management.

The banking and wealth business delivered NPAT of $208 million, reflecting improved operating expenses and strong credit quality. In response to some "unsustainable competitor pricing", the bank focused on profitable growth through the optimisation of price and volume.

Cameron says Suncorp has performed well against its three priorities of maintaining stability and momentum, elevating the customer, and recalibrating costs.

"Continued top line growth and further improvement in the underlying ITR will help maintain the stability and momentum of the business," he says.

"Our program of delivering additional marketplace capabilities will accelerate, driving growth as we deepen the relationships we have with our customers. This activity will be funded by an ongoing focus on our costs," says Cameron.

Suncorp finished the day's ASX trading steady at $13.15 per share.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

A game changer? Aspiring to the new standard on workplace mental health
Partner Content
Work health and safety regulators have been more active in the area of mental health ri...
Aon
Advertisement

Related Stories

WA suspends planned quarantine-free travel bubble with Queensland

WA suspends planned quarantine-free travel bubble with Queensland

The proposed quarantine-free travel bubble between Queensland and W...

Start-ups ready for orbit aboard Space Machines Company’s first mission

Start-ups ready for orbit aboard Space Machines Company’s first mission

The start-up world is clamouring for its place in orbit with Austra...

"Wake-up call" for the Gold Coast as rideshare driver tests positive to COVID-19

"Wake-up call" for the Gold Coast as rideshare driver tests positive to COVID-19

An unvaccinated Gold Coast-based rideshare driver in his 30s is rep...

Retailers set for pre-Christmas spree as hospitality takes a bigger bite

Retailers set for pre-Christmas spree as hospitality takes a bigger bite

Australian retailers are heading for another big spending spree ove...