Suncorp has announced a net profit after tax (NPAT) of $250 million, which includes the impact of higher natural hazard costs and volatile investment markets.
The Board has declared an interim dividend of 26 cents per share, fully franked.
Suncorp said the result showed solid top-line growth, with operating expenses well controlled and the Business Improvement Program exceeding targets.
Insurance (Australia) delivered NPAT of $133 million. Core Insurance portfolios are performing well, with Motor & Home GWP growth of 3 per cent. Operating and claims costs have reduced, while improving customer experience.
Banking & Wealth delivered NPAT of $183 million, with strong at-call deposit growth materially above system at 5.1%.
New Zealand achieved NPAT of A$111 million, reflecting benign weather and working claims improvement.
What Suncorp said
Suncorp CEO & Managing Director Michael Cameron said that the underlying performance of the business remains resilient.
"While the interim result includes natural hazard costs significantly above our allowance, as well as the impact of volatile investment markets, our underlying business remains resilient. We have achieved solid top-line growth, operating expenses are well controlled and the Business Improvement Program has again exceeded targets. The core of our insurance portfolios are performing well and in Banking, strong deposit growth and very low losses helped to counter the slow down in lending across the industry.
“Natural hazards, investment performance and unforeseen regulatory costs will impact our full year Cash ROE. However the business is well-placed on an underlying basis to perform in-line with our original expectations.
“The financial services industry today faces a great deal of change. This includes future policy settings, shifts in regulation, and material impacts on business and distribution models. I acknowledge the importance of the Royal Commission process, and accept that Suncorp has, at times, fallen short of community expectations.
“The work we’ve done on our business model and strategy, will allow us to navigate the changes ahead. I believe we have the right foundations for sustainable growth," he said.
More information: HYR ASX Announcement