Technology upgrades might have cost Suncorp AU$19 million in FY21, but the company still achieved significant growth in net profit and cash earnings.
Suncorp Group has reported bumper profits for the 2021 financial year while investments in strategic initiatives such as technology upgrades continued. For the period to 30 June 2021, Suncorp Group recorded after-tax group net profit of AU$1.03 billion, up 13% from AU$913 million last year, while cash earnings lifted 42% to AU$1.06 billion. Group operating expenses were AU$2.8 billion, slightly up from AU$2.75 billion, which the company attributed to a temporary increase in initiatives such as technology upgrades and higher marketing spend. The company outlined that technology costs came in AU$19 million and another AU$31 million was spent on « projects costs ». « Project costs have increased over the year, primarily due to the temporary step up in spending on strategic initiatives, » Suncorp Group CFO Jeremy Robson told shareholders on Monday. « The majority of spending this half has been on digital-first experiences and revitalising growth in insurance. In banking, our investment has been focused on winning in home lending. We also saw a modest increase in growth-related costs, with increased marketing offset by lower commissions. « Technology costs increased mostly in relation to the new telephony platform and increased cloud hosting costs from digitising the business.
