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Suncorp up by a third for 2005

Suncorp up by a third for 2005

(26 August 2005 – Australia) Queensland based Suncorp has posted a $821 million net profit for the full year to June 2005, a 33 percent increase on the previous year’s performance. Suncorp’s banking division grew 23.5 percent, delivering a pre-tax profit of $458 million.

The bank said the result was built on lending and deposit, high margins and low levels of bad debt. It said retail and business lending was strong with overall lending growing 15 percent.

Chief executive John Mulcahy said in business banking, Suncorp’s relationship management model continued to support ongoing sustainable growth in a slowing market.

"The division grew receivables by 17.7 percent to $14.4 billion at June compared to 11.5 percent for system," he said.

"Strong growth was achieved in Commercial (SME), Corporate and Development Finance lending. Also particularly pleasing was the strong turnaround in Agribusiness, lifting receivables 15.2 percent in the year," Mulcahy said.

Suncorp’s insurance business grew by 40 percent to $651 million; and the wealth management division increased 37.9 percent to $91 million.

Mulcahy said the overall business remained strong but that he expected competition to intensify across all markets.

"At a Group level, we expect a strong operating performance and growth in market shares from the majority of our business lines, however increases in underlying profit will be slower if the general insurance trading margin reverts to its long term sustainable range and if loan losses increase from current historic lows," Mulcahy said.
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