SUN profits down by a third
(24 February 2009 – Australia) Suncorp’s half year profit has been hit by a significant rise in impairments in the banking business, as well as increased insurance claims from severe weather events.
Overall, Suncorp managed a half year net profit of A$258 million, compared to A$384 million for the corresponding prior period, representing a 32.8 percent decrease in profit.
Profit before tax of A$482 million was hit particularly by Promina Acquisition items and Integration costs, which totalled A$207 million.
In its banking unit, Suncorp saw good growth in profit, offset by large impairment charges that have left half year profit down a significant 68.4 percent.
Profits before tax and impairments for the banking and insurance company were up a solid 38.7 percent for the last half of the 2008 calendar year to A$448 million.
Impairment losses on loans and advances, however, reached a staggering A$355 million, which could only be calculated as a ‘large’ change.
Profit after tax and impairments were therefore down 68.4 percent to just A$97 million for the half year.
General Insurance profit before tax was A$253 million, up 47 percent on the first half last year. Healthy growth was achieved in gross written premiums but major claims events again impacted the result.
Wealth Management profit after tax was up to A$135 million for the six months to 31 December 2008. To offset Funds Management profit decreasing signficiantly, Suncorp saw a gain in Life Risk discount rate changes.
Profit before tax of A$482 million was hit particularly by Promina Acquisition items and Integration costs, which totalled A$207 million.
In its banking unit, Suncorp saw good growth in profit, offset by large impairment charges that have left half year profit down a significant 68.4 percent.
Profits before tax and impairments for the banking and insurance company were up a solid 38.7 percent for the last half of the 2008 calendar year to A$448 million.
Impairment losses on loans and advances, however, reached a staggering A$355 million, which could only be calculated as a ‘large’ change.
Profit after tax and impairments were therefore down 68.4 percent to just A$97 million for the half year.
General Insurance profit before tax was A$253 million, up 47 percent on the first half last year. Healthy growth was achieved in gross written premiums but major claims events again impacted the result.
Wealth Management profit after tax was up to A$135 million for the six months to 31 December 2008. To offset Funds Management profit decreasing signficiantly, Suncorp saw a gain in Life Risk discount rate changes.
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