Suncorp Metway has upgraded its banking profit forecast despite acknowledging an exposure to the storm damage inflicted on south-east Queensland last week.
The banking group’s chief executive officer, John Mulcahy, said the company was now forecasting full-year growth in banking profit before tax and bad debts in the high teens, up from its previous guidance of high single digit growth.
He said the banking business had made a strong start to the current financial year and was well-positioned in relation to its capital and funding requirements.
Mulcahy said the bank’s profitability had also benefited from favourable revenue trends as pricing adjustments had flowed through.
“As a result, we now expect the increase in banking profit before tax and bad debts to be in the high teens for the full-year to 30 June, 2009, up from the previous guidance of high single digit percentage growth,” he said.
Looking at the impact of the south-east Queensland storms, he said the group had received 13,000 claims and, based on assessors’ reports and past weather events, it was estimated the group’s cost would be in excess of $150 million.
