Suncorp’s home loan portfolio up by $2bn

According to Suncorp’s first-quarter 2019 (1Q19) financial results, the bank’s home loan portfolio increased by $2 billion from $45.9 billion to $47.9 billion.

Since the release of its FY18 results, Suncorp’s loan book increased by 0.8 of a percentage point, from $47.6 billion.

Suncorp banking and wealth CEO David Carter said that the result reflected the lender’s ongoing commitment to “responsible and sustainable” lending practices in a competitive market.

“Growth in the home lending portfolio mirrored the previous quarter, up [by] 0.8 of a percentage point or $361 million,” Mr Carter said.

“Suncorp remains focused on driving sustainable, profitable growth within our current risk appetite.”

However, Mr Carter said that he expects tighter serviceability requirements to stunt mortgage growth in the coming year.  

“We expect the focus on additional verification requirements for home lending customers will contribute to an ongoing moderation of growth in home lending over FY19,” the CEO said.

The results also revealed that, while increasing by 3.7 per cent in the year to 30 September 2018, Suncorp’s business lending portfolio dropped from $10.9 billion to $10.8 billion over the past quarter.

“Business lending growth contracted slightly over the quarter, with moderate growth in our commercial and small business portfolios offset by a reduction in agribusiness lending following the repayment of debt,” Mr Carter added.

“We are targeting new business, across all sectors, in line with our risk appetite. While parts of the agricultural sector continue to face challenges, we are optimistic about the economy, which continues to benefit from a relatively weaker Australian dollar, a strengthening resources sector and historically low interest rates.”

Suncorp’s overall lending portfolio increased by 4.2 per cent in the year to September 2018, from $56.6 billion to $58.9 billion, and 0.5 of a percentage point in the past quarter, from $58.7 billion.

[Related: Bank bolsters mortgage portfolio by $2.8 billion]