Suncorp plays catch up
Suncorp Bank will continue to pursue growth in assets and deposits at above system and aspires to lift its market share by one percentage point, a feat that might lift the bank's profits by around 30 per cent.At present, Suncorp has a market share of deposits of 2.8 per cent and a market share of home loans of 2.9 per cent.Ten years ago, Suncorp's deposit market share was 3.7 per cent and its home loan market share was 3.3 per cent.The bank - part of the wider Suncorp insurance group - allowed its market share to drift during the later stages of the long credit boom and then lost more market share as its business model was tested during the financial crisis.Having restructured the bank (mainly by reporting "non-core" assets differently and curtailing property lending) the bank is back on a growth path.One theme at an investor briefing yesterday was that the bank had completed a series of five key investment projects over the last two years. These have replaced many dated systems and lifted productivity levels.One example, in relation to one aspect of the loan processing chain, suggested that productivity doubled in less than a year, thanks to improved workflow.On a different theme, the bank confirmed that it had "soft launched" its debut covered-bond issue this week. This is likely to be a domestic issue with the timing subject to pricing.