Suncorp Bank has released its full year results, revealing a five per cent increase in home lending.
Residential mortgages now account for 78 per cent of the regional bank’s lending portfolio, with commercial and SME lending contributing 12 per cent (up 4.4 per cent) and agricultural lending contributing 9 per cent (up 7.3 per cent).
In the 12 months to June 30, Suncorp managed to reduce its non-performing loans by 18 per cent, helping the bank deliver an after tax profit of $228 million.
The lender’s net interest margin increased from 1.64 per cent to 1.72 per cent in the year to June 30.
Chief executive Patrick Snowball said the clear and consistent strategy and focus on simplification were reflected in the group’s strong financial results in 2014.
“We’ve achieved significant milestones in simplifying our business and delivering ongoing cost savings,” Mr Snowball said.
“We’ve made appropriate investments in technology, data and business intelligence and we’ve taken the necessary measures to account for fundamental changes in the life insurance industry,” he said.
Simplification initiatives continue to deliver benefits and are expected to provide $225 million in savings in the 2015 financial year and $265 million in the 2016 financial year, Mr Snowball said.
“Positive momentum remains across all of Suncorp’s business lines and we are targeting growth of between 4 per cent and 6 per cent in the coming year,” he said.