Suncorp: capital and asset quality update, action on bushfires
Suncorp Bank provided an update yesterday on its assets, credit quality and capital as at 30 September 2013, in accordance with Australian Prudential Standard 330 (APS 330).The bank's chief executive officer, David Foster, said home lending grew through branch distribution in growth regions, complemented by customer acquisition through "improved servicing of brokers". New home lending business has come from owner-occupiers seeking to borrow less than A$500,000.Impairment losses of $18 million for the quarter were within the bank's medium-term expectation. The overall reduction in gross impaired assets, to $467 million (down by 7.7 per cent), reflects the bank's planned run off of its non-core portfolio of commercial property loans.The residual balance of the non-core portfolio reduced by $340 million over the September quarter, to $395 million, in line with expectations.Suncorp Group also took the opportunity to comment on the bushfires that have burnt across large parts of New South Wales, with the group's insurance arm working on about 400 claims. "With the fires now contained, we can begin the task of helping customers re-build their homes and communities following these devastating bushfires," said Suncorp Group's CEO, Patrick Snowball.Assessors have been deployed to the affected regions, he said, with costs to Suncorp estimated at between $60 million and $70 million so far, against the group's full-year natural hazard events allowance of $565 million.