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.