8 May 2015
Suncorp Bank today provided its quarterly update on Bank assets, credit quality and capital as at 31 March 2015, as required under Australian Prudential Standard 330.
Suncorp Bank continued to deliver quality lending growth in the March quarter with retail lending up 4.6%. Credit quality improved and the Bank’s capital position further strengthened.
Suncorp Bank CEO, John Nesbitt, said credit quality and mortgage growth were maintained while major milestones were achieved in key projects, the Ignite banking platform and Basel II Advanced Accreditation Program.
“The Bank made strong progress in the delivery of these strategic programs of work and they remain on track,” Mr Nesbitt said.
“Total lending in the quarter increased by 3.3% to $52 billion. The Bank has maintained discipline in its approach to lending with strengthened serviceability standards and improved credit security and scoring. This is testament to our focus on achieving sustainable, high quality growth in our target segments.
“The Bank continues to optimise the diversification and composition of its funding sources.
“Commercial and Agribusiness lending reduced by 1.8% driven predominantly by the managed exit of a small number of exposures, and a focus on quality and sustainability.”
Impairment losses reduced to $16 million or 13 basis points of gross loans and advances, within the target range of 10 to 20 basis points. Gross impaired assets reduced 3.8% to $252 million. Total provision coverage remains conservative and includes the drought overlay introduced in June 2014.
The capital position of the Bank remains robust with the Common Equity Tier 1 (CET1) ratio increasing to 8.82% as at 31 March 2015.
Download the Suncorp Bank APS330 for the quarter ended 31 March 2015 (PDF)
For more information contact:
Media: Michelle Barry on 0402 892 789
Analysts/Investors: Samantha Miller on 0402 426 767