Renewed focus for Suncorp
(26 November 2008 – Australia) Given the current tough economic conditions, Suncorp has said that upon reviewing its banking operations, it will now focus its investment on areas where it holds a competitive advantage.
This review forms part of a wider review of Suncorp’s portfolio management, which is intended to have positive consequences for funding and capital.
Suncorp chief executive, John Mulcahy, said that Suncorp will focus their lending efforts in relationship based portfolios.
Mulcahy said to analysts that the bank’s focus has certainly moved away from any large corporate lending.
Further, Mulcahy said that the bank is going to focus on the portfolios where they think we will have a relationship management advantage.
He said that these areas were agribusiness and core property development, but not corporate property development and not big corporate lending or structured finance.
The banking and insurance group also forecasted full year growth in banking profit before tax and bad debts in the high teens, up from previous guidance of high single digit percentage growth.
Suncorp said that the upgraded bank guidance was driven by strong revenue growth and projected flat expense growth year on year.
Suncorp chief executive, John Mulcahy, said that Suncorp will focus their lending efforts in relationship based portfolios.
Mulcahy said to analysts that the bank’s focus has certainly moved away from any large corporate lending.
Further, Mulcahy said that the bank is going to focus on the portfolios where they think we will have a relationship management advantage.
He said that these areas were agribusiness and core property development, but not corporate property development and not big corporate lending or structured finance.
The banking and insurance group also forecasted full year growth in banking profit before tax and bad debts in the high teens, up from previous guidance of high single digit percentage growth.
Suncorp said that the upgraded bank guidance was driven by strong revenue growth and projected flat expense growth year on year.
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