The performance of Suncorp's banking division in the 2009/10 financial year was clouded by the separation of its lending portfolios into core and non-core lines. The non-core bank holds corporate and property loans and lease finance and is in run-off.Operating profit for the banking division was $78 million, down from $117 million in 2008/09. Profit in the core bank was offset by a $224 million loss in the non-core bank.But when the clouds part, the core banking business does not look so good either. Interest revenue fell 15 per cent from $4.7 billion to $4 billion. Net interest margin was 1.84 per cent. Fee and commission revenue fell 12 per cent from $266 million to $234 million.Gross loans, advances and other receivables fell 6.5 per cent to $51.8 billion.Housing loan receivables grew 2.8 per cent, consumer lending fell 6.7 per cent and business lending fell 20 per cent.Retail deposits increased 8.5 per cent to $23.2 billion, taking the deposit ratio to 71 per cent.Impairment losses fell from $710 million to $479 million. This improvement came from a reduction in the collective provision, while bad debt write-offs rose from $57 million to $464 million.Suncorp chief executive Patrick Snowball said: "Core banking is making a contribution. Last year we did not know if it was going to be part of the organisation. Now we are out in the market and growing the business again."One bit of good news was that the run-off of non-core assets was moving ahead of schedule. The value of non-core assets has fallen from $17.5 billion in June last year to $12.6 billion at the end of 2009/10.