Suncorp Group's 1H24 financial results overview

Suncorp Group Limited (ASX: $SUN) has released its financial results for the half-year ended 31 December 2023. The company reported a net profit after tax (NPAT) of $582 million, marking a 5.4% increase from the previous year, with cash earnings reaching $660 million. The General Insurance business experienced a 16.3% growth in gross written premium (GWP), while Suncorp Bank reported a net interest margin (NIM) of 1.80%. The sale of Suncorp Bank to Australia and New Zealand Banking Group Limited (ANZ) is progressing, with completion expected in the middle of 2024.

Executive commentary on 1H24 financial results

The company's strategic targets include delivering a growing business with a sustainable return on equity above the through-the-cycle cost of equity. Suncorp Group aims to optimize shareholder value through its capital management strategy, with a fully franked interim dividend of 34 cents per share declared. The outlook for FY24 includes expectations of GWP growth in the low to mid-teens, with an underlying insurance trading ratio around the midpoint of the 10% to 12% range. The company remains committed to a 60% to 80% dividend payout ratio.

Summary of 1H24 financial results and outlook

Suncorp Group Limited (SUN) has reported a 5.4% increase in NPAT, reaching $582 million, and cash earnings of $660 million for the half-year ended 31 December 2023. The General Insurance business saw significant GWP growth, and the sale of Suncorp Bank to ANZ is progressing towards completion in 2024. The company's strategic targets focus on delivering sustainable returns and optimizing shareholder value through capital management. The outlook for FY24 includes expectations of GWP growth and a commitment to a dividend payout ratio.