Full year profit at Suncorp dropped 8.38% to $1.038 billion, mainly due to increased insurance payouts from the massive storms and huge tides which hit the east coast of Australia in June.
Overall revenue was down 7.39% to $15.48 billion for the 12 months to June.
The Suncorp Bank increased its net profit after tax by 11% to $393 million, mainly due to a 5.9% rise in home lending, better margins and a fall in bad loans.
However, the general insurance profit of $624 million was down 17% on the $756 million from the previous year.
“Natural hazard claims for the year were $60 million above the allowance,” the company says.
CEO Michael Cameron says an organisational restructure, completed in early July, has positioned the business to deliver on its strategy.
“We have completed our transition to the new operating model, removing structural constraints to enable the business to deliver its unique customer marketplace strategy,” he says.
The company declared a fully franked final dividend of 38 cents a share, bringing the total dividend to 68 cents, a payout ratio of 80% of cash earnings, but down on last year’s 76 cents.
Suncorp shares are trading at $13.21, up from a year low of $10.11.
The results in detail: