Suncorp's profits soar 52% to $1.133 billion despite big storm insurance payouts

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Queensland’s Suncorp, which is on a multimillion dollar cost cutting program, posted a 55.2% rise in net profit of $1.133 billion for the full year to June 30.

The finance, insurance, and banking group had been expected to report $1.178 billion.

The result was despite the impact of Suncorp’s worst year of natural hazard events which had a net impact of $1.068 billion, well above the allowance of $595 million.

The company declared a final ordinary dividend of 38 cents per share and a special dividend of 12 cents per share.

CEO Patrick Snowball said that the strong result was delivered despite five major weather events in Queensland and New South Wales.

“I’m proud that Suncorp has been able to increase profit and dividend in a year of terrible weather events and, at the same time, deliver exceptional customer service,” he said.

Here’s the detail on the results:

Suncorp delivered $225 million in cost savings in the 2015 financial year and expects to increase this to $265 million in 2016.

The bank aims for an ordinary dividend payout ratio of 60% to 80% of cash earnings.

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