City Beat: Suncorp may be sharpening axe for more job cuts

Suncorp has successfully navigated the challenges posed by the Covid-19 pandemic but is it preparing to cut more jobs to reduce costs further?

Suncorp will announce its interim results next week

Is Suncorp preparing to apply the axe to its workforce yet again?

That’s the speculation outlined in the CaneToad investor newsletter on the eve of Suncorp’s interim results, set to be announced next Tuesday.

CaneToad, put out by Charlie Green’s Hunter Green Institutional Broking, says the bank could be moving to slash 10 per cent of its workforce, equivalent to about 300 jobs.

Suncorp has closed scores of branches in the past couple of years to cut costs and accommodate more people turning to internet banking. Suncorp says it does not comment on market speculation.

Suncorp said in 2020 that Covid-19 had resulted in faster adoption of digital channels by customers and “new, more innovative and agile internal ways of working”.

CaneToad says the Brisbane-based financial giant also is planning a $300m capital raising to fund the acquisition of Zurich’s Australian general insurance operations.

Suncorp CEO Steve Johnston and chairman Christine McLoughlin

CaneToad is pretty scathing about the performance of Suncorp shares in recent years, noting investors would be better off putting their money in one of the bank’s savings accounts.

The newsletter notes that since the appointment of current Suncorp chair Christine McLoughlin the stock has dropped 1.8 per cent while the ASX has risen 7.2 per cent.

Since chief executive Steve Johnston was appointed in September 2019, the Suncorp shares have fallen 2.2 per cent while the ASX has risen 5.18 per cent.

To be fair, Johnston also has helped Suncorp Group successfully weather the Covid-19 storm with improved performances at both its insurance and banking division last year.

Suncorp reported a 42 per cent jump in cash earnings to $1.06bn for the year ended June 30.

BLUE-BLOOD LUNCH

Former prime minister Tony Abbott wowed a crowd of blue-blood conservatives at the Brisbane Club this week, but vows he has no penchant for a return to the political fray.

A full house at the lunch, sponsored by the Australian Institute of Progress, chowed down on truffled mushroom risotto, smoked chicken, petite fillet and broccolini.

Abbott was at the lunch to promote a book called Cancel Culture in which he has an essay published. But he was good enough to sit down after lunch and have selfies taken with admirers.

Spotted in the crowd was former Liberal MPs Denver Beanland and Jane Prentice, state opposition leader David Crisafulli, National Party icon Larry Anthony, company chairman Bob Tucker and Australian Institute of Progress boss Graham Young.

For such a bunch of red in tooth and claw conservatives, the Brisbane Club still told guests that “if you are vegetarian, pescetarian, vegan, allergic, or something else which means you can‘t eat some, or all, of these dishes, please let us know.”

Former PM Tony Abbott

NOOSA BOUND

Mining execs will be making a beeline for not one but two Noosa Mining Conferences this year.

Convener Phil Dickinson is already signing up some big names for the first conference to be held at Peppers Noosa from July 20-22. That will be followed by a second conference at the same venue from November 9-11. Last year Nick Jorss of Bowen Coking Coal, Lake Resources boss Steve Promnitz, Diatreme Resources’ Neil McIntrye and Metallica boss Theo Psaros were among the guest speakers.

The now infamous drinks session on the second day of the conference, sponsored by richlister Steve Bizzell’s Bizzell Capital Partners, has become the place to seal some big deals.