Suncorp announced earnings for FY17 which resulted in a sharp drop in the share price during yesterday’s session.
The group delivered NPAT of $1,075m up 3.6% on the same time last year. Suncorp also announced a final dividend of $0.40 taking the full year dividend to $0.73.
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We’ve been warning about Suncorp in the monthly ASX 50 video reports and exited all Suncorp holdings 8 weeks back at $14.50 per share. We remain cautious, as downside risks are increasing from higher costs and increased risk of higher BDD charges in the bank.
The previous point is not a unique issue to Suncorp, the pattern of higher expenses and under preforming loans will soon become more evident for all the banking names.
