Financial services company Suncorp-Metway Ltd
(ASX:SUN) has reported a 41% rise in first half profit to $364 million today, however the company cut its dividend in an effort to preserve cash.
The result fell in the middle of the company’s previous guidance range for between $355 and $375 million profit.
CEO Patrick Snowball says while the increase in profitability is pleasing, the company will maintain a cautious and conservative approach to managing its business over the short term.
However Suncorp banking arm delivered after tax profit of just $4 million, comprised of a $224 million pre-tax profit for the core bank and $211 million pre-tax loss for the non-core bank.
The company declared a dividend of 15 cents a share for the half, down 5 cents on the same period a year ago.
Suncorp posted a $348 million profit for fiscal 2009.
