Shrinking Suncorp

Suncorp Metway may have a strategic goal for its banking business of running down non-core, and mainly business lending, assets.

In practice, at least recently, it looks like the core lending operation is also in reverse.

Monthly data on bank assets published by APRA yesterday shows that Suncorp's home loan book declined by five per cent over the month of August 2009 alone, to $26.8 billion.

Suncorp's home loan portfolio is back to the level it was in May 2008, a period during which the housing lending of all banks has increased by $125 billion.

Suncorp's business lending declined by 1.8 per cent over August, Australian Prudential Regulation Authority data shows.