Brisbane-based bank and insurance group Suncorp (SUN), will pay out 100% of its 2014-15 profits, the group revealed in today’s profit statement and accounts.
That’s after recording a net after tax profit of $1,133 million in the year to June (2013-14 $730 million).
The company said profit after tax from business lines was $1,235 million (down from the 2013-14 figure of $1,330 million).
Directors said the improved result was achieved despite the financial impact of Suncorp’s worst year of natural hazard events which had a net impact of $1,068 million (that’s the big storms in Brisbane in November, Cyclones in central Queensland and bad storms in Sydney and floods in parts of NSW in the June half year), well above the company’s allowance of $595 million.
Suncorp Chairman Ziggy Switkowski said the Group’s strong capital position and improved financial performance has allowed the Board to declare a final ordinary dividend of 38 cents per share and a special dividend of 12 cents per share.
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That final of 38 cents a share is actually 2 cents lower than the 40 cents a share paid for the 2013-14 financial year, while the special payout is down from the 30 cents a share paid for the same year.
“Both dividends are fully franked and will be paid on 22 September 2015. Total dividends for the year represent a payout of 100% of the Group’s $1,133 million NPAT,” Dr Switkowski said.
“Following payment of the dividends, Suncorp will continue to have a very conservative balance sheet. The strong excess capital position of $570 million provides the Group with flexibility in its capital management, including the ability to make further capital returns in the future.”
Suncorp’s Group CEO Patrick Snowball said that the strong result was delivered despite five major weather events in Queensland and New South Wales which, when combined with smaller attritional events, resulted in total net natural hazard claims of $1,068 million.
The final dividend of 38 cents takes the full year payout to 76 cents a share, up from 75 cents in 2013-14. The special dividend of 12 cents a share was down from the 30 cents a share paid last year. That means the total payout is down on 2013-14’s $1.05 a share.
