Wealth management made a significant contribution to a record $1 billion profit posted by Queensland-based Suncorp today.
The company reported that its wealth management division had posted a profit of $81 million before tax despite what its chief executive, John Mulcahy, described as a difficult year for all financial services organisations, with increasing competition, margin pressure and slowing credit formation in particular sectors.
The company reported a $691 million profit before tax in its general insurance business, with a record insurance trading ratio for the full year of 19.3 per cent.
Looking forward, Mulcahy said macroeconomic conditions remained sound although future interest rate increases, if they occurred, would impact on lending growth in the retail mortgage sector and competition would continue to be intense in the financial services sector as the economy and growth slowed.
