Suncorp-Metway chief executive John Mulcahy yesterday said his financial services group would this year continue to outperform in its insurance, banking and wealth management divisions, despite the threat of a cyclical downturn in its core markets. Each of the sectors achieved record results in 2003-04, with the insurance operation's pretax profit doubling as the group reported full-year earnings of $618 million, up 61 per cent. Mr Mulcahy, in Melbourne speaking to investors and analysts after last week's results, is preparing the group for a cautious expansion from its Queensland base, which produces about half its profits. The share price, up more than 18 per cent so far this year, yesterday added 15 ¢ to $14.65. Mr Mulcahy predicted his banking unit would take more of the home lending market and increase deposits through its Everyday savings account. General insurance, which last year reported pretax profit of $465 million from $233 million, would get a boost from improved products, service and marketing. Profit drivers will be outperformance in each of the business lines, continuing productivity gains and improving costs and synergies as a result of the diversified strategy," he said. The economy, the extent of the mortgage market slowdown and the threat of irrational insurance pricing were the major external issues Suncorp-Metway faced over the coming year. Victoria, which accounts for about 15 per cent of profits, would become more important as the bank unrolled its national expansion program.
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