Suncorp Group has posted a 68.6 per cent rise in full-year cash profit, bouncing back from the paper losses on its investment portfolio that impacted the prior year’s returns.
The Queensland financial company announced on Wednesday it made $1.15 billion in net profit after tax for the 12 months to June 30, a bit less than consensus expectations of $1.17 billion.
Suncorp made $755 million from its Australian insurance products, up 333.9 per cent from 2022.
Suncorp Bank made $470 million, up 27.7 per cent from the previous year, with Suncorp still hoping to sell that division to ANZ for $4.9 billion despite last week’s knock-back from the competition regulator.
As a result of the delays, Suncorp said it expects the separation costs to rise to between $575 million and $600 million, up from $500 million originally forecast.
Suncorp’s New Zealand insurance business made $105 million, down 32.3 per cent from last year, with two large weather events and elevated motor vehicle claims hampering returns.
Suncorp made a mark-to-market profit of $724 million on its $16.2 billion investment portfolio, compared with a $190 million loss in 2021/2022.
Overall the group reported cash earnings of $1.33 billion, up 90 per cent from the $697 million it made in 2021/22.
Suncorp Group chief executive Steve Johnston said the group had successfully delivered on a three-year turnaround plan laid out in 2020.
“Our dedicated focus on digitising and automating, reinvigorating our leading brands, becoming more efficient and improving how we serve our customers, has helped us to deliver strong top-line growth across our businesses and improve underlying margins,” he said.
Suncorp also announced a shake-up of its Australian insurance business, separating its consumer division from its new commercial and personal injury function.
The company announced a final franked dividend of 27 cents per share, taking its full-year dividends to 60 cents per share, compared with 40 cents per share last fiscal year.
– AAP
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