Suncorp expands mortgage distribution footprint

Suncorp Bank says intermediaries helped the lender see 60 per cent of new home loan business originating outside its local market.

In a trading update last week, Suncorp announced an after-tax profit of $194 million for the six months to 31 December 2015.

The bank said the result was supported by “strong credit quality experience and a continued focus on sustainable, quality lending in a highly competitive environment”.

Suncorp’s home lending grew by 3 per cent over the half year.

“Strong intermediary relationships resulted in 60 per cent of new business originating outside the traditional Queensland market,” the bank said.

The lender said it had maintained a disciplined approach to responsible lending practices, demonstrated by 88 per cent of new home loans written during the half year having a loan-to-valuation ratio of 80 per cent or below.

The group noted that its net interest margin has improved to sit at the top of the target range, at 1.85 per cent, with market-wide repricing offsetting increased funding costs and heightened competition.

Suncorp Group chief executive Michael Cameron said the foundations of the Suncorp strategy remain unchanged and that the journey of simplification and optimisation had been successful and will remain very relevant.

“Suncorp has created enormous value by focusing on the strategic assets of capital, cost, and culture,” Mr Cameron said.

“We have also made advancements on the customer front which has typically been within each line of business.

“Mastering the customer capabilities across our business remains our greatest opportunity," he said. "The most sustainable and successful companies create value for their customers.”

[Related: Suncorp Group names new CEO]

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