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Suncorp profit jumps 61 percent

Suncorp profit jumps 61 percent

(27 August 2004 – Australia) Suncorp has posted a net annual profit of A$618 million for the year to June 30 compared with A$384 million the previous year, a 61 percent increase. In this latest result, Suncorp’s banking business, the six largest by assets in Australia, was overtaken by its insurance division which reaped the benefits of the GIO acquisition.

The general insurance division earned A$465 million in pre-tax profit compared with A$233 million the year before, up 99.5 percent. The banking business posted a profit of A$371 million compared with A$318 million last year, up 16.7 percent.

Suncorp said its total lending and securitised assets increased by 20.2 percent for the year compared with 15.5 percent for the banking industry as a whole.

Its home lending book grew by 18.5 percent while business lending increased 23.5 percent to A$12.2 billion.

In wealth management, the company’s pre-tax profit grew 61 percent to A$66 million.

Suncorp chief executive John Mulcahy said the company was optimistic about the current year and was focused on profitable growth.

"You can see this in our track record, and we have a number of continuing and new initiatives to ensure we continue to deliver. We have announced a good set of results today and on the back of our strategies and the momentum we have established, we see a strong outlook for the 2004-05 financial year," Mulcahy said.

"In banking, while there has been a slowdown in home lending and increased competition may lead to some deterioration in margins in the industry, we will be focused on profitable growth and we do expect to deliver a percentage increase in profit greater than single digits."
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