SUNCORP PROFIT HIT BY BAD ASSET
Written on the 21 August 2013 by James Perkins
SUNCORP Group’s (ASX:SUN) 32 per cent drop in net profit is a case of short-term pain for long-term gain as the business works to close its poisonous non-core bank.
“Resolution of the non-core bank came at a cost to the headline profit but the decision to undertake the portfolio sale has de-risked the Bank, released capital in support of shareholder returns and made clear the true value of the Suncorp Group,” he says in a statement today.
SUN shares were trading steady at $12.47 early this afternoon. The price has increased about 50 per cent in the past year.