Suncorp shares drop on weaker dividend, outlook
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More news: Suncorp shares were down 4.2% to $13.16 in early trading on the ASX, with investors likely disappointed by its decision to pay out a lower final dividend of 27 cents a share despite higher full-year profit. The group also outlined a challenging operating outlook as the economy slows and the risk of natural hazards this summer rises.
Suncorp's full-year profit rises to $1.15 billion
The news: Insurance and banking group Suncorp has lifted its full-year profit as margins improved amid rising interest rates and solid gains at its insurance division.
The numbers: Cash profit for the year to 30 June nearly doubled to $1.25 billion from $673 million a year ago. Statutory net profit also jumped, rising to $1.15 billion from $681 million a year ago. Suncorp will pay a final dividend of 27 cents a share, down from 40 cents a year earlier.
The context: The Suncorp Bank division posted a $470 million profit as its lending increased and net interest margin improved, while the insurance division delivered a $755 million underlying profit after several years of natural catastrophe losses. The lender has limited its dividend payout as it continues to push for the sale of its banking arm to ANZ despite the deal being knocked back by the ACCC last week.
The source: ASX Announcement
