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. These profits are down 44.7% from $452 million in the same period last year; while its cash earnings dropped 12.5% to $413 million, compared to $472 million in 1H18
Suncorp said the result showed solid top-line growth, with operating expenses well controlled and the Business Improvement Program exceeding targets.
“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,” said Michael Cameron, Suncorp CEO and managing director (pictured).
" 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.