Suncorp profit up 49 per cent to $730 million

SUNCORP has lifted its full year profit almost 49 per cent following an improved performance from its banking and insurance business.

Suncorp building in Brisbane CBD.

SUNCORP has lifted its full year profit almost 49 per cent following an improved performance from its banking division and gains from its general insurance business. The company made a net profit of $730 million for the year to June 30, up from $491 million a year ago.

Suncorp said it would target growth of between four and six per cent for 2014/15, along with a return on equity of at least 10 per cent.

In response to the improved performance, Suncorp lifted its fully-franked final dividend by 10 cents to 40 cents per share and announced a special dividend of 30 cents per share, up from 20 cents a year ago.

Chairman Dr Ziggy Switkowski, said the bank had enough capital on hand to justify the increased dividends.

“After paying these dividends, the group will still hold more than $831 million of additional capital above the company’s conservative operating targets,” he said.

The company’s banking business bounced back with a net profit of $228 million, after one-off writedowns dragged the business to a $343 million loss last year.

Net profit from its general insurance division was up 14 per cent to $1.01 billion, while the life insurance division lifted its net profit more than 50 per cent to $92 million.

The life division managed to lift net profit to $92 million despite being hit with $496 million in post-tax writedowns linked to losses from some products and impairments to its goodwill and other intangible assets.