Qld mums and dads preparing for huge Suncorp windfall after sale to ANZ
Ordinary Queenslanders with shares in Suncorp can expect a tidy windfall next month after the bank’s sale to ANZ and a strong six months.
QLD Business
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Insurance giant Suncorp’s investors can expect a cash windfall next month as the group rolls out a special dividend and returns capital from the sale of its banking arm to ANZ along side its higher interim payout on the back of a strong first-half.
A potential buyback may add to those returns.
Suncorp reported a profit of $1.1bn, compared to the prior corresponding period’s $582m result, with the number for the six months to December 31 boosted by a one-off gain of $252m on the bank sale and supported by favourable natural hazard experience, positive investment returns and the non-recurrence of prior year reserve strengthening, which impacted the prior period.
Cash earnings, which strips off one-off items, was $860m, up from $660m.
The first tranche of the return of capital associated with the bank sale will occur on March 5, amounting to $3 per share.
A fully franked special dividend of 22c per share, associated with the sale, will be paid alongside the interim ordinary dividend of 41c per share on March 14.
Chief executive Steve Johnston said “Suncorp is now a simpler, more resilient, and focused business that consistently delivers for customers and shareholders” and flagged a potential buyback.
“We have proven to have a disciplined approach to capital management with the amount and quality of capital superior to our peers.
This approach has served shareholders well over time with Suncorp one of the few financial services companies not undertaking large-scale, dilutive capital raisings during Covid.
He said the insurer has the capacity for further capital management initiatives, “most likely the establishment of an on-market buy-back facility”.
“We will update the market further once the Bank proceeds have been returned to shareholders.” Shares in Suncorp last at $20.35.
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