, Australia

Australia's Suncorp reports $654.4m profit for “very challenging” FY2020

The group’s cash earnings shrunk 32.8% from FY2019.

Australian insurance and banking firm Suncorp Group reported a net profit after tax of $654.1m (A$913m) for the fiscal year that ended on 30 June, in what the insurer described as a “very challenging year”, the group said in a bourse filing.

This was in part due to the $204.2m (A$285m) profit from the sale of Capital SMART and ACM parts business, and a $63.7m (A$89m) non-cash impairment charge relating to their core banking platform.

Although net profit is more five times higher than the $125.4m (A$175m) reported for FY2019, However, insurer cautioned against comparisons given the one-off divestments of their Australian Life business and Capital S.M.A.R.T.

The group’s cash earnings contracted 32.8% YoY to $536.7m (A$749m) as a result of reduced profits from the insurance and banking & wealth divisions.

Insurance profit after tax dropped 33.9% YoY to $275.1m ($384m), whilst banking & wealth profit shrunk 33.5% YoY to $173.4m (A$242m) compared to a year earlier.

Suncorp also increased its collective provision to $182.7m (A$255m) as of 30 June from $166.9m (A$233m) in 31 March, reflecting conservative economic assumptions and additional overlays given the ongoing uncertain outlook.

As of 31 July, 5% of the group’s home lending platform is under temporary deferral, down from 8% in 30 June, the group said in the announcement.

The group declared a final dividend of A$0.1 per share.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Private fund tokens may be the future of investing
Kinexys seeks to keep a token’s sensitive financial information from prying eyes.
More tax perks could drive Philippine SMEs to go ‘green’
The Southeast Asian nation’s 1.1 million small businesses can be a target for green loans. 
Asia struggles with G20 payment targets
The ultimate goal is for cross-border payments to achieve “the speed of the internet.”