Suncorp Group Provides Update

Suncorp as today provided its quarterly update as at 30 September 2017, as required under Australian Prudential Standard 330.

Total lending grew 2.4% over the quarter, primarily due to strong home lending supported by improved capability, simplified processes and improved retention.

Suncorp Banking and Wealth CEO David Carter said the result reflects the Group’s strategy to deliver greater value for customers, and Banking’s commitment to driving sustainable, profitable growth.

“Providing simple, innovative and relevant product offerings, complemented by fast and consistent service propositions is making it easier for new and existing customers to connect with banking solutions that meet their needs,” Mr Carter said.

“Simplifying our processes and improving customer retention has helped deliver home lending growth of $1.1 billion and growth across business lending, primarily within the commercial and small business portfolios.

“A focus on growing savings and transaction banking solutions through better engagement with our customers and integrated customer offers has also been successful, with strong levels of new account openings.

“This has been achieved while maintaining our commitment to responsible and sustainable lending practices. We remain well placed within macro-prudential measures with year-on-year investor lending growth of 7.6% and new interest-only lending of 29% achieved for the quarter.”

Credit quality performance remains strong with impairment losses of $5 million, or 4 basis points of gross loans and advances (annualised). Higher arrears reported in the second half of the 2017 financial year relating to changes in hardship operational practices and processes are stabilising, as the temporary impacts of the revisions have normalised.

The Bank has maintained its measured approach to managing funding and liquidity risk ensuring a strong and sustainable funding profile that supports balance sheet growth.

This includes the successful issuing of a $1.5 billion capital effective Residential Mortgage-Backed Security (RMBS) transaction, which further supports stability as reflected in the Net Stable Funding Ratio (NSFR) position, estimated to be 113% as at 30 September 2017.

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