While most banks have responded to the weak demand for credit and high funding costs over the past year by keeping growth targets modest and reining in costs, Suncorp Bank has done the opposite.Suncorp reported yesterday that its banking division grew above system in the mortgage and business lending markets, and it incurred a high level of expense growth as it invested in "regaining its brand presence".Growth in the Queensland-based bank's housing loan receivables was 9.6 per cent in the year to June, compared with system growth of 5.4 per cent. Business lending increased by 10.7 per cent, compared with system growth of 7.3 per cent.The bank said it had a "clearly defined growth strategy underpinned by robust risk management processes designed to deliver above-system growth over the medium term."It has opened 21 new branches and district banking centres over the past couple of years. Its strategy is "to build the pipeline through an expanded footprint, improved processes, service delivery and a simplified product proposition."The bank said it was "focused on regaining its brand presence in its prime Queensland market, while continuing its inter-state expansion."Growth came at the cost of higher operating expenses, which rose 7.3 per cent. The cost-to-income ratio rose from 52.5 per cent to 53.5 per cent. Higher spending went into branch expansion, investment in technology and the commencement of a Basel III accreditation program.The bottom line result was a net profit of A$289 million for the year to June - an increase of 11.6 per cent over the previous year.The December half was stronger than the June half. Net profit was $156 million in the first half and then fell 14.7 per cent to $133 million in the second half.Net interest income rose seven per cent to $896 million.Impairment losses were down 19.6 per cent to $41 million. The bank said there were no systemic credit risk issues and it expected credit quality to remain within its "risk appetite".The bank's net interest margin was stable, rising just two basis points, from an average of 1.9 per cent in 2010/11 to 1.92 per cent in the year to June.Its funding capability was enhanced during the year by the successful establishment of a covered bond program. The inaugural issue, of $1.6 billion, was undertaken in May.The ratio of deposits to loans was 68.9 per cent, down slightly from 70.1 per cent in 2010/11.