Suncorp performance to outstrip forecast
Suncorp has signalled it expects to post a 13 per cent increase in pre-tax profit for its wealth management business for the six months to December 2004 and has upgraded its group profit forecast for the period.
Suncorp is flagging a net interim profit after goodwill and tax of about $395 million to $410 million, compared to $281 million for the corresponding six months in 2003.
General insurance pre-tax profit contribution for the six months to December 31 last year is expected to increase by about 20 per cent on the 2003 period, and general insurance by more than 50 per cent.
Managing director John Mulcahy said the 2004/05 interim results, scheduled to be released on February 25, will be “stronger than expected”.
Mulcahy said the results reflect the “success of Suncorp’s diversified financial services strategy in a favourable operating environment”.
He “remains optimistic” for the full-year 2004/05 results, although “economic and competitive conditions have become tougher as we have entered the second half”.
“A further slowdown in lending growth and increased pressure on net interest margins and insurance premiums are expected to lead to a slowdown in growth in the second half of the year.”
“In addition, second-half claims experience could be less favourable than the first-half,” he said.
Back in 2003 Suncorp’s wealth management profit for the six months ending December 31, increased by 112 per cent (or $17 million) to $36 million before tax and goodwill depreciation on the corresponding six months in 2002. Group pre-tax profit for the six month period in 2003 was $434 million.
The group ended the 2003-04 financial year with a record 61 per cent increase in net profit across all three of its main business areas.
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