Suncorp Group (SUN): A fistful of dollars
Suncorp Group (SUN): A fistful of dollars. SUN reported a cash NPAT of $1,304m, up 126%. The bottom line benefited from stronger General Insurance and Banking contributions and stabilisation within the Life business. SUN is now considered a fully de-risked business following its exit from the non-core banking business with the capacity to extract cost synergies, release surplus capital and further strengthen ROE (i.e. plenty left in the tank). FY15 forecasts another 110c of fully franked dividends, made up of 1H 45c, 2H 50c and a 15c special, adding up to $1.80 of fully franked dividends next 13 months, or a 13 month yield of 12.4%, or 17.7% grossed up. We reaffirm a Buy recommendation.
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