Suncorp profit 'disappointing'
Suncorp has posted a fall in net profit after tax of 40 per cent for the year to June 30, 2009, to $348 million, a result the board acknowledged would be disappointing for shareholders.
The group’s statement to the Australian Securities Exchange today said a focus on cost control in its banking arm was offset by a “significant increase in provisions for bad and doubtful debts”.
In the group’s life insurance arm, in-force premiums rose 7.3 per cent to $733 million, while life risk profits also rose by 13 per cent to $87 million. The insurance division’s contribution after tax was $115 million.
Sales of individual life risk products were up 10.6 per cent, with the group focusing on driving new business through external financial adviser distribution channels.
However, these results were offset by lower funds management profit, the group said, despite cuts in operating expenses of more than 8 per cent over the year. The group’s funds management profit after tax was down 49.3 per cent to $35 million.
Chairman John Story said the group’s underlying performance was “solid” but that each of its businesses was impacted during what was a challenging year for the group.
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