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REPORTING SEASON: Suncorp Group (SUN)

Brought to you by CommSec

 

Figure 1: Suncorp Group 12 month chart

 

Suncorp rewards investors with a special dividend

·         General insurer and Australia’s 5th largest bank has announced a 49% rise in net profit to $730 million for the year ending 30 June 2014. The result includes a $496 million after tax write-down of goodwill in the Suncorp Life Insurance business

·         The result was driven by improving margins, fewer claims relating to disasters & favourable investment market outcomes. Suncorp reported growth across the General Insurance business with a net profit after tax of $1,010 million in 2014 compared to $883 million in 2013. Gross written premium (excluding the impact of the Fire Service Levies (FSL)) rose 5.1% to $8,725 million. Natural hazard claims of $538 million were $27 million below long run allowances. Suncorp Bank delivered a profit before tax of $326 million compared to a loss before tax of $475 million the previous year. Retail and business lending rose 5.0% to $49,828 million which was below target, reflecting a considered approach to lending in a competitive mortgage environment and in the face of challenging agribusiness trading conditions.

·         Suncorp announced a fully franked final dividend payment for 2014 of 40 cents per ordinary share and a fully franked special dividend of 30 cents per share. The ex-dividend date is Wednesday 20 August 2014. The record date is Friday 22 August 2014 with the payment to be made on Wednesday 1 October 2014.

 

You can see all of CommSec’s reporting season analysis by clicking here.

Tom Piotrowski, Market Analyst,