Suncorp Bank is making good progress running off its non-core loan portfolio. The bank reported yesterday that it had run off A$8.5 billion of its non-core portfolio and is now $2.4 billion ahead of target.The non-core portfolio was put together during the financial crisis and is made up business the bank is no longer involved in - lease finance, corporate loans, development finance and property investment.Suncorp Bank's chief executive, David Foster, said the number of exposures over $50 million in the non-core portfolio had fallen from 121 to 62. Suncorp hosted an investor day in Sydney yesterday, where the group's chief financial officer, Craig Nesbitt, said the bank has called in $200 million of subordinated debt this year. It   will redeem $300 million more next month as it gets its balance sheet in shape for the new Basel III capital rules, he said.At the end of March, the bank had a Tier 1 capital ratio of 6.83 per cent - up from 3.89 per cent in December 2008.The group was congratulated by regulators and shareholders in December for its non-operating holding company restructure.Nesbitt said that as the run-off continues the bank will look to repatriate capital back to the group.