Suncorp Group Limited · ASX:SUN
Suncorp — Suncorp-Metway — JP Morgan Australasian Conference 2008
23 slides from Suncorp's conference presentation, Sep 19, 2008
Slide 1: Suncorp-Metway Ltd
Suncorp-Metway Ltd John Mulcahy, CEO JP Morgan Australasian Conference 19 September 2008
Slide 2: Agenda
Agenda 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance • Wealth Management • Capital 3. Integration & outlook 4. Questions 2
Slide 3: Suncorp at a glance
Suncorp at a glance • Group total assets in excess of A$94bn • Our products and services reach over 35% of Australian households • Australia’s largest general insurer with GWP of over A$6bn • Australia’s 6th largest listed bank with assets of A$74.6bn • Wealth Management business with FUM of over A$
Slide 4: Suncorp's History
Suncorp’s History 1996 merger created “Metway Bank” “Suncorp Metway” Listed on ASX* in 1988 (previously Metropolitan Permanent Building Society) 2001 acquired “GIO” general insurance “Suncorp” GOC**. Renamed in 1986. (previously SGIO Insurance) 2007 acquired “QIDC” “Promina” Business banking, Agribu
Slide 5: Australian economic environment
Australian economic environment Population growth & GDP Unemployment rate 0.80% 270,000 9.5 0.70% 8.5 250,000 0.60% 7.5 230,000 0.50% 6.5 0.40% 210,000 % 5.5 0.30% 190,000 0.20% 4.5 170,000 0.10% 3.5 0.00% 150,000 2.5 Mar-1995 Mar-1996 Mar-1997 Mar-1998 Mar-1999 Mar-2000 Mar-2001 Mar-2002 Mar-2003 M
Slide 6: Agenda
Agenda 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance • Wealth Management • Capital 3. Integration & outlook 4. Questions 6
Slide 7: Full year result to June 2008
Full year result to 30 June 2008** General Wealth Banking Insurance Management PBT PBT Underlying profit after $633m (+11.2%) $307m (-74.9%) tax* $136m (-9.3%) Net interest income Net earned premium Life risk annual premium $1,030m (+13.2%) $5.9bn (+2.5%) $683m (+11.4%) Cost to income ratio Major cl
Slide 8: Banking – asset growth
Banking – asset growth A$bn Retail lending Business lending 17.1 growth growth 13.1% 29.7% 10.1 5.6 5.9 5.6 3.8 3.6 2.4 0.9 QLD housing Interstate Consumer Commercial Corporate Development Property Lease Agribusiness loans housing loans loans (SME) Finance Investment Finance Jun-07 Jun-08 8
Slide 9: Banking – credit quality
Banking – credit quality 1.68% Impaired assets to 1.49% 1.41% 1.46% 1.32% 1.11% 1.12% 1.06% 0.95% gross loans 0.69% 0.70% 0.60% 0.45% 0.51% 0.35% 0.13% 0.23% 0.18% 0.20% 0.10% 0.16% 0.13% 0.16% 0.06% 0.08% 0.09% Gross Non-Performing loans, % of gross loans Impairment Losses, % of gross loans Collect
Slide 10: Banking – funding portfolio, June 2008
Banking – funding portfolio, June 2008 Retail funding accounts Total wholesale funding A$37bn for 42% of total funding Short-term wholesale Securitisation corporates RMBS term 2% 12% Securitisation warehouse RMBS Short-term 5% wholesale banks Offshore private 13% placement 2% Term Transactions 30% O
Slide 11: GI – Australia's largest general insurer
GI – Australia’s largest general insurer A$m Australian GWP Commercial GWP half on half SUN 2,951 IAG 2,844 2,827 2,800 2,811 Other 2,683 QBE 1,480 1,317 1,279 Personal GWP Other SUN QBE 30-Jun-07 31-Dec-07 30-Jun-08 IAG Suncorp IAG QBE Source: Company data, APRA, Suncorp estimates 11
Slide 12: GI – premium growth by product
GI – premium growth by product A$m GWP by product 2,106 4.7% 2,206 1,290 7.8% 1,391 1,569 2.5% 1,608 758 (11.3%) 674 Jun-07 Jun-08 Other Workers' Comp CTP Commercial Home Motor Including discount rate adjustment and fire services levy 12
Slide 13: GI – events and claims inflation
GI – events and claims inflation Date Event A$m A$m MAJOR EVENTS July 2007 Floods in New Zealand 20 Oct 2007 Storms in Lismore 60 Dec 2007 Storms in Sydney 170 Dec 2007 Earthquake in New Zealand 5 Dec 2007 Storms in Melbourne 25 Feb 2008 Storms in Mackay 100* Apr 2008 Wind storms in Victoria / Tasma
Slide 14: Wealth Management – new business sales
Wealth Management – new business sales A$m Sales Investment sales 16 174 100 15 44 346 25 466 17 13 12 12 544 388 23 25 Jun-07* Jun-08 Jun-07* Jun-08 Term & TPD Trauma Superannuation Pensions Disability income Group Investment * Pro-forma 14
Slide 15: Capital position
Capital position 30 June 2007 30 June 2008 Target Bank Capital Adequacy Ratio 9.86% 10.44% 10.0%-10.5% Bank ACE 5.04% 4.58% 4.5%-5.0% GI MCR Coverage 1.73x 1.68x 1.53x (0.19%) 0.72% (2.34%) 0.94% 1.98% (0.20%) (1.37%) 5.04% 4.58% ACE June Equity Bank earnings Integration Intra-company Group ACE Risk
Slide 16: Agenda
Agenda 1. Overview of Suncorp & the Australian economy 2. Summary of results • Banking • General Insurance • Wealth Management • Capital 3. Integration & outlook 4. Questions 16
Slide 17: Well on track to realise integration synergies
Well on track to realise integration synergies A$m Integration costs and benefits Expense management P&L view • A prudent approach to expense management 317 325 241 • Target further Group savings 316 288 • Further business unit specific 104 initiatives 103 • Savings tracked and monitored centrally (
Slide 18: The Bank – focus and outlook
The Bank – focus and outlook 2008-2009 Outlook Customer service PBT & bad debts Amongst highest in high single digit growth customer satisfaction ratings Focus on improved net interest margin David Foster Control of expenses leads combined bank Distribution Cost base Focus on deposit clear targeted
Slide 19: GI – focus and outlook
GI – focus and outlook 2008-2009 Outlook New Zealand ITR including integration Focus on retention of 10% - 12% profitable business Growth in GWP 4% - 6% Roger Bell New Zealand No material structural Bernadette Inglis releases personal lines Mark Milliner Personal lines commercial lines Commercial Ev
Slide 20: Wealth Management – focus and outlook
Wealth Management – focus and outlook 2008-2009 Outlook Product Underlying profit Growth in life risk flat offering Investment market volatility to continue Geoff Simplification of Summerhayes business model leads Wealth Management Distribution Cost base Product innovation – Maximise value Driving c
Slide 21: Suncorp-Metway Ltd
Suncorp-Metway Ltd John Mulcahy, CEO JP Morgan Australasian Conference 19 September 2008
Slide 22: Disclaimer
Disclaimer This report contains general information which is current as at 19 September 2008. It is not a recommendation or advice in relation to Suncorp-Metway Limited or any product or service offered by the Suncorp Group. This report should be read in conjunction with all other information concer
Slide 23: Investor Relations Contacts
Investor Relations Contacts Karen Cush karen.cush@suncorp.com.au Tel: +61 (0)7 3836 1960 Nicole Marques nicole.marques@suncorp.com.au Tel: +61 (0)7 3835 5797 Mark Ley mark.ley@suncorp.com.au Tel: +61 (0)7 3835 5639 www.suncorp.com.au
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