Suncorp profit rises 61 per cent
Suncorp Metway rounded off the 2003-04 financial year on a high today by reporting a record 61 per cent increase in net profit across all three of its main business areas.
The group reported a net profit of $618 million across its banking, general insurance and wealth management units, up $384 million from last year and declared a final fully franked dividend of 70 cents per share, an increase of 25 per cent on last year.
The bulk of the profit was generated in general insurance, which contributed $456 million to the total - up 99.6 per cent on last year. Banking and wealth management contributed $371 million and $66 million respectively.
Suncorp has pinned the growth on improved market conditions in the insurance sector, a rapid recovery in home lending in the banking sector and the recovery of equity markets in the wealth management sector.
Chairman, John Story says the group has also benefited from a structural and organisational review and has reaped the full rewards of its acquisition of GIO from AMP in 2001.
Chief executive John Mulcahy says the company is optimistic about the year going forward despite warning a slowdown in home lending and increased competition may lead to some deterioration in margins for its banking division.
“We have announced a good set of results today and on the back of our strategies and the momentum we have established, we see a strong outlook for the 2004-05 financial year,” Mulcahy says.
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