Suncorp’s half-year results indicate positive progress in digital simplification program


Image: Suncorp Group

Suncorp Group reported that in the first half of fiscal 2022, it continued to simplify its digital assets across all three business divisions, namely Insurance, Banking and Wealth, and New Zealand.

Some of the key highlights were in its banking and wealth businesses, with the company pointing out that its “on-call” deal portfolio grew to almost 13% in the first half of fiscal 2022, which was supported by offers. including the launch of its buy-it-now, pay-later product, Suncorp Pay Later.

The bank also boasted that it had completed the migration of personal customers to the Suncorp app, where average monthly logins to the app per customer increased by 10% to just over 23 as a result.

During the six months, Suncorp saw a more than 20% lift in digital account openings by consumer demand, with digital now accounting for more than 70% of new deposit accounts, the company said.

“Updated digital fraud monitoring resulted in the removal of important inbound call drivers. Digital engagement and origin capabilities continued to strengthen, including joint account online origin, pre-populated income and expense data and the launch of an updated brokerage portal,” the company said. added.

As a result of these updates, Suncorp’s after-tax net banking profit rose 5.3% to A$200 million, representing 55% of the group’s A$361 million in cash profit for the year. the semester. Operating expenses rose 1.1% to A$366 million, which the bank attributed to a temporary increase in spending on strategic initiatives.

Similarly, Suncorp New Zealand invested in the digital and data capacity of core systems during the semester, for example in the development of a singles claims platform to standardize and automate manual work. As a result, operating expenses rose nearly 9% to NZ$250 million, while Suncorp New Zealand’s after-tax profit fell 35% to NZ$84 million for the six months.

From a total group perspective, the company closed the period to December 31, 2021 with net profit after tax down 21% to A$388 million and operating expenses of $1.4 million. Australians.

The group took the opportunity to also provide an update on the progress of its three-year digital transformation plan, saying that it remains on the right track.

“The group is on track to achieve this by investing in 12 strategic initiatives, with the benefits of this program materializing in the form of accelerating revenue growth momentum, reducing the number of claims, lower loss and expense ratios and improved productivity,” the company said.

These 12 strategic initiatives include enhancing digital sales and service capabilities and continuing to simplify its digital offerings.



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