Suncorp Group has posted a 68.6 per cent rise in full-year cash profit, bouncing back from the paper losses on its investment portfolio that impacted the previous year's returns.
The Queensland financial company announced on Wednesday it made $1.15 billion in net profit after tax for the 12 months to June 30, a bit less than consensus expectations of $1.17 billion.
Suncorp made $755 million from its Australian insurance products, up 333.9 per cent from 2022.
Suncorp Bank made $470 million, up 27.7 per cent from the previous year, with Suncorp still hoping to sell the division to ANZ for $4.9 billion despite last week's knock-back from the competition regulator.
"We maintain our view that the proposed sale is in the best interest of customers, shareholders and employees and that it will deliver public benefits not only for Queensland, but for the nation," chief executive Steve Johnston told analysts.
Alluding to speculation Bendigo and Adelaide Bank might buy Suncorp Bank instead, Mr Johnston said based on Suncorp's extensive analysis, there was no relevant alternative transaction involving another regional bank that had any commercial likelihood of going ahead.
"Now, we've only had a couple of days to review the ACCC determination (but) we've seen nothing that has changed our view on these matters and our level of confidence that the deal will ultimately be approved," he said.
ANZ and Suncorp are appealing against the ACCC's decision to knock back the purchase.
Suncorp expects the process will take about another eight months and is forecasting its separation costs to rise to between $575 million and $600 million, up from $500 million originally predicted.
Suncorp's New Zealand insurance business made $105 million, down 32.3 per cent from last year, with Cyclone Gabrielle and North Island flooding and elevated motor vehicle claims hampering returns.
Suncorp's insurance business in Australia has also been experiencing double-digit inflation in motor vehicle claims, Mr Johnston said.
"At its core, you can't stop the supply chain in motor vehicle repair for three years, hibernate a workforce which is very much dependent upon overseas migration and apprenticeship training, and then expect it to kick up immediately overnight," he said.
"That's been a complexity the whole industry has been focused on and it challenges the whole industry."
Suncorp made a mark-to-market profit of $724 million on its $16.2 billion investment portfolio, compared to a $190 million loss in 2021/2022.
Overall the group reported cash earnings of $1.33 billion, up 90 per cent from the $697 million it made in 2021/22.
Suncorp also announced a shake-up of its Australian insurance business, separating its consumer division from its new commercial and personal injury function.
The company announced a final franked dividend of 27 cents per share, taking its full-year dividends to 60 cents per share, compared to 40 cents per share last fiscal year.
At 11.48am AEST, Suncorp shares were down 2.3 per cent to $13.43.
