Suncorp’s ASX-listed shares were sold off on Wednesday after the company unveiled one of its best earnings results on record. The Brisbane-based diversified financial services provider posted a net profit for the 12 months to the end of June of A$1.14 billion on the back of surging investment earnings, premium hikes, volume increases and gains on banking margins. However, the 69 per cent leap in bottom-line earnings failed to propel the company’s share price amid concern over expected increases in costs relating to the troubled sale of the banking business to ANZ. The share price plumbed to an intraday low of $13.12 in morning trading, but recovered to close down 21 cents to $13.54. While a large number of banking analysts believe that ANZ and Suncorp are likely to win an appeal against the ACCC’s decision to block the transaction, that expectation actually worked against Suncorp’s share price on Wednesday. Suncorp included fresh disclosures in its outlook statements flagging a 20 per cent blowout in the cost of transferring its banking business to ANZ if the deal is allowed to proceed. The company previously flagged that it would absorb transition costs of around $500 million on the deal, but the bill is now likely to climb to as much as $600 million. “Progress on separating the bank continues,” Suncorp revealed in its outlook statement. “Whilst there is no change to the expected net proceeds from the transaction, there have been some offsetting changes in the component parts.  “In particular, the Group now expects the separation and other costs to increase from $500 million to between $575 million to $600 million given the delay in completion as well as further clarity on the programme requirements.  “The Group will work through the details of these costs and update the market once details are refined.” Suncorp’s banking division improved its contribution to the bottom line significantly after recording 9 per cent growth in mortgage volumes and significant cost improvements. The bank’s cost-to-income is now the lowest among the regional banks after falling to 51.8 from 59 per cent a year ago. The banking division reported a net profit of $470 million – up $102 million on the 2022 result. Group chief executive Steve Johnston attributed most of the expansion of the home loan book to wider penetration of the broker market and reaffirmed Suncorp’s support for ANZ’s bid to get the ACCC verdict reversed. “Suncorp will support ANZ through the next step of the merger authorisation process as it relates to the sale of Suncorp Bank, being a referral of the ACCC’s recent decision not to approve the transaction to the Australian Competition Tribunal for review,” he said. “We remain fully committed to supporting Suncorp Bank while the process continues.” Broking analysts highlighted concerns over the sustainability of Suncorp’s interest margins and cost metrics if the deal with ANZ does not proceed. “Suncorp bank is targeting a cost to income ratio of mid 50s alongside net interest margin guidance range of 1.85-1.95 per cent,” observed Goldman Sachs analyst Julian Braganza in a report to clients.??“Suncorp would not be drawn on comments