Annual Review 2015/16

Suncorp Bank is providing a genuine alternative to the major banks by offering award-winning products and services, and a superior experience to its personal, small business, commercial and agribusiness customers across Australia.

The Bank performed strongly throughout 2015/16 in an ongoing low-growth, low interest rate operating environment. Profit after tax was $393 million, up 11% on the previous year and the net interest margin increased to 1.86%, at the top end of the Bank’s target range. This result was supported by a continued focus on strong credit quality and sustainable, high quality lending growth. The home mortgage portfolio grew 5.9%, which was broadly in line with system growth. In this challenging environment, it’s important to carefully manage costs. Costs reduced by 3.4%, resulting in the cost to income ratio declining to 52.5%.

Achieving Advanced Accreditation remains a key priority. While the Bank continues to pursue the approval of its Accreditation, the business is already benefiting from a better understanding of underlying risk and profit drivers. Its risk management capability is more sophisticated and there is a strong risk culture within the business.

Advancements in technology and digital communications continue to influence the way customers engage with Suncorp. In support of this change, the Bank continues to evolve and improve its products and services, to ensure its customers can bank when, where and how they want. This includes the launch of fingerprint login for internet banking and new digitally inspired, interactive branches. This strengthened focus on meeting customers’ needs through technology is supported by the delivery of the Bank’s new core banking platform. This major technology upgrade provides the Bank with the foundation to streamline and simplify its product offerings, improving efficiency and capability.

“Financial Basics Foundation, with the support of Suncorp, aims to fill the gap by enabling and empowering teachers and schools across the country to help students learn how to manage their money, and avoid getting into unhealthy debt.”

Katrina Birch
CEO Financial Basics Foundation

The trend for customers to increasingly use technology to complete their everyday banking, and visit a branch for more complex financial needs is continuing. In response to this change, the Bank is investing in new mobile technologies and improved service capabilities, as well as continually reviewing its services and branch locations. This will help provide customers with access across multiple channels, including online, in person and over the phone.

Suncorp’s strong heritage of being connected to its customers continues to extend to its communities, through its enhanced focus on supporting the financial future of Australia’s younger generation. This year, the Bank formed a national partnership with the Financial Basics Foundation, a not-for-profit organisation which aims to enable and empower teachers and schools across the country to help students learn how to effectively manage their money.

The Bank has also launched an Agribusiness Professional Development Program – connecting farmers who are starting their career in agriculture, with experienced multi-generational farmers looking to bestow their years of knowledge, experience and learnings on the next generation.

In recognition of the Bank’s strong support of the business sector, the Bank was awarded Money magazine’s 2016 Business Bank of the Year Award. The award recognised the Bank’s competitive suite of full featured products, and its commitment to being a genuine alternative for business customers. It’s the second major award the Bank has received from the publication in the past two years, after being the first non-major bank to be named Bank of the Year in 2015.

Awards

  • Money magazine 2016 Business Bank of the Year
  • Top non-major in the 2016 Mortgage Professional Australia Brokers on Banks survey
  • 2015 Product of the Year, receiving a 5 Star Canstar rating for Home Package Plus
  • Money magazine’s Best of the Best Awards 2016 Best Kids Savings Account
  • 2016 Canstar Innovation Award for BillSplitter app