Suncorp punished for disappointing result
(Australia) - Shares in Brisbane based allfinanz group Suncorp-Metway slumped 7 percent after the company delivered a flat first half profit last week.
Suncorp posted a modest A$1 million rise in its interim net profit to A$155 million in a result marred by higher expenses and a A$15 million one-off loss on fixed interest bond trading.
Despite the result, new managing director John Mulcahy, the former head of retail banking for Commonwealth Bank, said there would be no change to the group's "allfinanz" strategy.
The banking side of operations again disappointed, with its pre-tax contribution falling 2 percent to $150 million.
Mulcahy said despite a likely fall off in the housing market and sub-system growth by the bank in home lending, the division would still deliver a full year increase in pre-tax profit of 8 to 10 percent.
As expected, Suncorp's relatively small wealth management division was sharply lower, falling from $36 million to $17 million in its pre-tax contribution due to weak markets.
Despite the result, new managing director John Mulcahy, the former head of retail banking for Commonwealth Bank, said there would be no change to the group's "allfinanz" strategy.
The banking side of operations again disappointed, with its pre-tax contribution falling 2 percent to $150 million.
Mulcahy said despite a likely fall off in the housing market and sub-system growth by the bank in home lending, the division would still deliver a full year increase in pre-tax profit of 8 to 10 percent.
As expected, Suncorp's relatively small wealth management division was sharply lower, falling from $36 million to $17 million in its pre-tax contribution due to weak markets.
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