Suncorp Bank’s mortgages and business lending portfolios both ran off in the September quarter, and its household deposit growth was below system. The bank released an update on Friday, reporting that its mortgage portfolio contracted 0.1 per cent in the September quarter as it “focused on profitability amid ongoing and intense price-driven competition”. The book returned to growth in the month of September as competition started to ease. Business lending contracted 0.9 per cent in the quarter, largely due to increased external refinancing. There was some growth in a couple of segments, including development finance and the SME portfolio. Household deposits was another area of intense competition. The bank’s transaction portfolio contracted 9 per cent annualised. There was growth in a couple of segments: term deposit inflow was up 43 per cent annualised and savings account balances grew. Despite allowing the loan portfolios to run off to focus on profitability, the bank said its margin was under pressure. On credit quality, the bank reported that arrears (payments overdue by 90 days or more) as a proportion of gross loan and advances grew from 49 basis points in the June quarter to 57 bps in the September quarter.