Suncorp To Stay On Top Of It
Sydney Morning Herald
Thursday September 2, 2004
Suncorp-Metway chief executive John Mulcahy yesterday said his financial services group would continue to outperform in its insurance, banking and wealth management divisions, despite the threat of cyclical downturn in core markets.
Each of the sectors achieved record results in 2003-04, with the insurance operation's pre-tax profit doubling. Overall, the group reported a full-year 61 per cent surge in earnings to $618 million. Mr Mulcahy, who was in Melbourne speaking to investors and analysts, is also preparing a cautious national expansion from its Queensland base, which accounts for 50 per cent of profits. Its share price, up more than 18 per cent so far this year, yesterday added 15c to $14.65. Mr Mulcahy predicts banking will take more of the home lending market, where its monthly growth has exceeded industry growth since February, and deposits would benefit from expanding distribution of the Everyday savings account. General insurance, which last year benefited from investment returns, higher revenue and lower claims, pushing pre-tax profit to $465 million from $233 million, will get a boost from improved products, service and marketing. Mr Mulcahy also expects an upgraded selection of products will boost the wealth management division. "Profit drivers will be outperformance in each of the business lines," he said.
© 2004 Sydney Morning Herald