Suncorp's non-core bank at advanced run-off stage
Suncorp's non-core bank, an A$18 billion portfolio of commercial property and development loans that was quarantined from the rest of the bank in 2009, is in an advanced stage of run-off.Yesterday, Suncorp reported that the outstanding balance of the portfolio was down to $4.5 billion at the end of June. Exposures with balances in excess of $50 million are down to 34, from 121 at inception.There are $1.8 billion of impaired loans in the portfolio. The bank said all accounts have work-out strategies in place.Suncorp advised that the non-core portfolio will be under $3 billion by the end of the current financial year.The non-core bank made a loss of $263 million in the year to June, compared with a $175 million loss in the previous year. The weaker result was the result of additional exposures being impaired during the year. The impairment loss increased from $274 million to $364 million.