#Early results from refocused strategy
Suncorp has announced a net profit after tax (NPAT) of $642 million, which includes the $293m after-tax profit from the sale of the Capital SMART and ACM Parts businesses.
The Board declared an interim ordinary dividend of 26 cents per share, fully franked.
Suncorp Group CEO, Steve Johnston, said the results reflect the early progress we have made in implementing the refocused strategy outlined to the market in August 2019.
“While there is more work to do, we’re confident in the progress made across each of our four strategic priorities. This was achieved against the backdrop of challenging economic conditions and significant natural disasters, including storms and bushfires.
“As the recovery continues, we are working closely with our customers to help them rebuild and get their lives back on track as soon as possible. We know this recovery will take time but with our capabilities and experience, we understand what it takes to support our customers and communities every step of the way.”
Profit after tax (PAT) from the business lines declined 6.2%, reflecting lower reserve releases, an increase in regulatory project costs, and a contraction in the home lending book.
Insurance Australia delivered PAT of $123 million, down 3.9% on the prior corresponding period. The core insurance portfolio achieved strong results, with growth in Home and Motor gross written premium (GWP) of 3.1%.
Banking and Wealth delivered PAT of $171 million, with at-call deposit growth, significantly above system at 11.8%, improving the Bank’s net interest margin by 2 basis points to 1.92%.
Suncorp New Zealand achieved PAT of $108 million, demonstrating a normalised natural hazards experience, following several years of benign weather conditions.
Mr Johnston said the additional investment in our reinsurance program means the Group is well protected against natural hazards heading into the second half.
“We remain confident in the resilience of the Group and we will continue to take a strategic approach to protect the consistency of our earnings by strengthening our core businesses, supported by appropriate risk selection, and significantly strengthened reinsurance arrangements.
“Looking ahead, we will continue to build our portfolio of brands while focusing on adding value through our digital platforms and shaping the business to better drive operational excellence and efficiency.”