Suncorp profit eroded by floods
(23 February 2011 – Australia) Suncorp bank’s first-half net profit has dropped by 38.7 percent, after devastating floods and storms ravaged the bank’s key market of Queensland.
Despite the drop in net profit, the bank’s bottom line still beat analysts’ expectations of A$190 million.
The country’s fifth largest bank said that first-half net profit was A$223 million, down from A$364 million a year ago.
Suncorp shares retreated in early trading, losing 7 cents or 0.8 percent, to A$8.51 in recent trading. The overall market is down about 0.2 percent.
The firm announced a dividend of 15 cents.
The insurance industry estimates the cost of the deadly floods and storms at A$2.5 billion with a large part of it covered by reinsurance.
Insurance net profit for the first half was A$292 million, down from A$347 million in the previous corresponding period.
Chief executive, Patrick Snowball said that the half-year results from the bank’s insurance and banking operations have been adversely impacted by claims costs as a result of two massive insurance events - the Queensland floods and the first major Christchurch earthquake -as well as a string of smaller weather events.
The impact of those events would have been far greater were it not for Suncorp’s recent simplification strategy, he added.
The country’s fifth largest bank said that first-half net profit was A$223 million, down from A$364 million a year ago.
Suncorp shares retreated in early trading, losing 7 cents or 0.8 percent, to A$8.51 in recent trading. The overall market is down about 0.2 percent.
The firm announced a dividend of 15 cents.
The insurance industry estimates the cost of the deadly floods and storms at A$2.5 billion with a large part of it covered by reinsurance.
Insurance net profit for the first half was A$292 million, down from A$347 million in the previous corresponding period.
Chief executive, Patrick Snowball said that the half-year results from the bank’s insurance and banking operations have been adversely impacted by claims costs as a result of two massive insurance events - the Queensland floods and the first major Christchurch earthquake -as well as a string of smaller weather events.
The impact of those events would have been far greater were it not for Suncorp’s recent simplification strategy, he added.
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