Suncorp Group Limited · ASX:SUN
Suncorp — Suncorp-Metway — UBS Global Financial Services Conference 2008
19 slides from Suncorp's conference presentation, May 12, 2008
Slide 1: Suncorp-Metway Ltd
Suncorp –Metway Ltd John Mulcahy, Chief Executive Officer UBS Global Financial Services Conference 12 May 2008
Slide 2: Agenda
Agenda Overview of Suncorp Key numbers Key challenges Summary
Slide 3: Suncorp at a glance
Suncorp at a glance • Group total assets in excess of A$91bn • Approximately 8m customers • Australia’s 3rd largest P&C insurer with GWP of over A$3bn in H1 07/08 • Australia’s 6th largest listed bank with assets of A$69.3bn • Wealth Management business with FUM of over A$27bn • Over 16,000 staff in
Slide 4: Suncorp – the history
Suncorp – the history 1 Integration 2 1 2 Organic growth 3 Corporate Development Promina 3 2 Value 1 3 Suncorp 2 1 Metway QIDC 1996 2001 2007→ 4
Slide 5: Suncorp at a glance
Suncorp at a glance Profit before tax A$ (m) 2,500 100% 8% 6% 7% 90% 20% 20% 2,000 80% Merger with 70% Promina 55% 54% 1,500 49% 28% 60% 54% 50% 1,000 40% 30% 50% 500 20% 39% 38% 40% 25% 10% 0 0% 2003-2004* 2004-2005 2005-2006 2006-2007** 2007-2008 2003-2004* 2004-2005 2005-2006 2006-2007** 2007-200
Slide 6: Robust and stable economic environment... with well structured industries
Robust and stable economic environment... 0.80% 270000 Banking 0.70% 250000 • Well structured and stable industry 0.60% 230000 • Regional banks offsetting “Big 4” 0.50% domination 0.40% 210000 • Competition intensifying • Industry passing higher funding 0.30% costs through to customers 190000 0.20%
Slide 7: Robust and stable economic environment... Property & Casualty
Robust and stable economic environment... Personal lines market share* (%) Property & Casualty • Industry consolidation • One of the worst large claims years on record • Premium increases in personal lines Commercial lines market share* (%) • Evidence of hardening in commercial lines premiums • Mark
Slide 8: Half Year Result to December 2007
Half Year Result to 31 December 2007** Wealth Banking P&C Management PBT and Bad Debts PBT $172m Underlying profit after $323m (+9.9%) (-75.4%) tax* $85m (+9.0%) Life Risk annual Net interest income Net earned premium premium $675m $484m (+6.6%) $2.9bn (+3.0%) (+15.4%) Cost to income ratio Major cla
Slide 9: Suncorp – FY08 guidance
Suncorp – FY08 guidance Banking – growth in profit before tax and bad debts 10% - 12% P&C – ITR inc. A$90m integration benefits 9% - 12% Wealth management – underlying profit growth >10% Dividend nominal growth 9
Slide 10: Key challenges
Key challenges Delivery of integration benefits Navigation of global credit and funding crisis Securing capital position
Slide 11: Successful delivery of integration benefits
Successful delivery of integration benefits PHASE 1: PHASE 2: PHASE 3: Settling in Design Implementation • March – July 2007 • July – November 2007 • December 2007 onward • Develop business model • Integration initiatives • Implementation of over 300 • “Quick wins” of A$55m identified initiatives an
Slide 12: Navigation of global credit and funding crisis
Navigation of global credit and funding crisis EUROPE ECP Senior Debt - Benchmark Issuance Sub-debt – Bank & Insurer UNITED STATES Securitisation Commercial Paper ASIA ECP Senior Debt Sub-debt Securitisation AUSTRALIA Deposits NCD’s Bank Bills Senior Debt Sub-debt Capital Securitisation • Wide varie
Slide 13: While impaired assets have increased…
While impaired assets have increased… Impaired Assets as a % of Risk Weighted Assets 1.00% 0.90% Key: 0.80% ANZ CBA 0.70% NAB 0.60% WBC 0.50% SGB 0.40% Majors 0.30% SUN 0.20% 0.10% 0.00% FY01 FY02 FY03 FY04 FY05 FY06 FY07 *Actual and Estimated figures from Macquarie Research 11
Slide 14: ... credit quality will continue to limit write-offs
... credit quality will continue to limit write-offs Bad and Doubtful Debt Expense/Risk Weighted Assets* 0.60% Key: 0.50% ANZ CBA 0.40% NAB WBC 0.30% SGB Majors 0.20% SUN 0.10% 0.00% FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08E FY09E FY10E *Actual and Estimated figures from Macquarie Research 12
Slide 15: Securing the capital position
Securing the capital position Reported Updated 30 Jun 31 Dec 31 Dec Target 2007 2007 2007 Bank Capital Adequacy Ratio 9.86% 10.84% 11.88% 10.0%-10.5% Bank Adjusted Common 5.05% 4.54% 4.68% 4.5%-5.0% Equity P&C Minimum Capital 2.02x 1.99x 2.07x 1.53x Requirement Ratio Updated 31 Dec 2007 calculation
Slide 16: Summary
Summary Underlying business very strong Top-line growth following weather events Diverse and secure funding base Further securing capital base Placed to capitalise on integration 17
Slide 17: Questions?
hi “) Questions?
Slide 18: Disclaimer
Disclaimer This report contains general information which is current as at 12 May 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 concerning S
Slide 19: Investor Relations Contacts
Investor Relations Contacts Steve Johnston steve.johnston@suncorp.com.au Tel: +61 (0)7 3835 5281 Buy-side enquiries Nicole Marques nicole.marques@suncorp.com.au Tel: +61 (0)7 3836 1960 Sell-side enquiries Mark Ley mark.ley@suncorp.com.au Tel: +61 (0)7 3835 5639 www.suncorp.com.au
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