One bank with few worries over conditions in the wholesale financial markets is Suncorp Bank. It has a deposit-to-loan ratio of 69.4 per cent - all its lending is matched by retail deposit flows and its requirement for term funding this year will be just A$2 billion.Suncorp reported yesterday that its core banking division made a net profit of $156 million for the six months to December - an increase of 42 per cent on the previous corresponding period.Suncorp has a core bank and a non-core bank. Two years ago it quarantined a portfolio of low-grade commercial loans and put them in run-off. That portfolio, which now totals $5.7 billion (of which $2.2 billion are impaired loans), made a loss of $54 million for the half-year.Over the past two years there has been plenty of speculation that Suncorp would sell its core banking business. However, this now appears unlikely, as the group is investing in the business.Suncorp chief financial officer John Nesbitt said the bank had started a core banking system replacement. By June it will have a new customer relationship management system, a new broker commission platform and a new trade finance system.Suncorp Bank is a very conservative outfit these days. Eighty per cent of its $40.8 billion in lending assets is in residential mortgages. The mortgage book grew a little above system during the half.The impairment loss for the half-year was a mere $9 million. The value of retail and business loans in arrears and impaired assets has fallen steadily for the last three half-year periods. The run-off of the non-core book is progressing ahead of schedule and will be close to $2 billion by the end of the 2012/13 financial year. Non-core lending assets have fallen from 18 per cent of total bank lending to 12 per cent over the past two years.Nesbitt said he was relaxed about the bank's "modest" funding task this year. Last year it issued $650 million of senior unsecured notes and $1.25 million of residential mortgage-backed securities."We could do senior unsecured, RMBS or covered bonds. We will look for the best outcome," he said.