Suncorp records 16.2 per cent profit increase

Suncorp appears to be quickly bedding down its merger with Promina, with the big Queensland-based group reporting a 16.2 per cent increase in net profit to $1.064 billion, inclusive of a 15-week contribution from Promina.

Wealth management continued to be a solid contributor to the group, reporting a 28.2 per cent increase in profit after tax and growing to $229 million when the Promina contribution was taken into account.

The group reported that bank profit before tax increased by 12.5 per cent to $569 million while general insurance profit before tax, including the Promina result had risen to $835 million, despite the Queen’s Birthday weekend storms in NSW.

Commenting on the result, Suncorp chairman John Story said it had been strong across the broad portfolio of businesses with further confirmation of the strategic rationale underpinning the merger with Promina.

“This result highlights the complementary nature of the Suncorp and Promina businesses, as well as the huge opportunities available to us by successfully integrating them,” he said.

Looking over the horizon, Suncorp chief executive John Mulcahy said forecast banking profit before tax and bad debts would increase by around 10 per cent, while underlying profit in wealth management, excluding investment returns on shareholder funds, would grow by greater than 10 per cent.

He said the group was reviewing its capital structures in the wake of the Promina merger in order to optimise its capital potential.