Suncorp Group (SUN) H2 2024 earnings summary

Executive summary

• Delivered FY24 cash earnings of AUD 1,372 million and NPAT of AUD 1,197 million, with underlying GI profit after tax up 29% year-over-year to AUD 1,104 million.

• Completed the sale of Suncorp Bank to ANZ on 31 July 2024, with net proceeds of around AUD 4.1 billion expected to be returned to shareholders in early 2025, subject to approvals and business needs.

• Declared a final fully franked dividend of AUD 0.44 per share, with a full year payout ratio of 72% of cash earnings.

• Strong performance in General Insurance, with GWP up 13.9% to AUD 14.1 billion, and improved underlying insurance trading and services ratios.

• Maintained a strong balance sheet with AUD 203 million CET1 capital held at Group level.

Financial highlights

• Net investment returns increased to AUD 661 million from AUD 451 million year-over-year, driven by higher yields and strong equity markets.

• Group operating expenses increased by 8.5% to AUD 2.5 billion, mainly from growth investments, inflation, and higher bank expenses.

• GI operating expense ratio improved by 80 bps to 13.9%.

• Dividend per share for FY24 is 78 cents, with a payout ratio of 72% of cash earnings.

• CET1 capital held at Group is AUD 203 million, with strong capital ratios maintained.

Outlook and guidance

• GWP growth expected in the mid to high single digits for FY25, with underlying ITR/UITR targeted at the top end of the 10%-12% range.

• Investment income anticipated to moderate as interest rate expectations adjust.

• Expense ratios expected to remain broadly flat, with continued investment in strategic initiatives.

• Sustainable ROE targeted above the through-the-cycle cost of equity, supported by platform modernisation.

• Capital management to remain disciplined, with payout ratio at the midpoint of the 60–80% range.