Suncorp lifts profit but sees a cooling housing market ahead

Picture: Kai Schwoerer/Getty Images

Suncorp posted a 3.6% rise to $1.075 billion in net profit after tax for the full year but sees some risks emerging from the property market.

“We anticipate a cooling of house price growth nationally while Queensland will continue to benefit from an affordability advantage emerging,” the banking, insurance and wealth management group said when announcing its results.

Suncorp, in its briefing papers, says there are areas of strong property price growth but pockets of oversupply represent risks.

Here’s how Suncorp sees the market, with household debt rising as a proportion of disposable income:

On the full year results, Suncorp declared a fully franked final dividend of 40 cents per share, bringing the total payout to 73 cents a share, up from 68 cents a year ago. The dividend represents a payout ratio of 81.9% of cash earnings.

CEO Michael Cameron says the result reflects top-line growth of 3.6% across the group, disciplined management of margin, and a sensible balance between reducing overheads and investing in future growth.

“Insurance, Banking and Wealth and New Zealand delivered strong performances, demonstrating the value of operating a diversified business model with multiple earning streams,” says Cameron.

“Our focus on elevating the customer has resulted in an increase in total customers, driven by improved volumes and better retention.”

Full year 2017 results by division:

Source: Suncorp

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