ASX announcement

2 November 2017

Suncorp Bank APS330 Update

Suncorp today provided its quarterly update as at 30 September 2017, as required under Australian Prudential Standard 330.

Total lending grew 2.4% over the quarter, primarily due to strong home lending supported by improved capability, simplified processes and improved retention.

Suncorp Banking and Wealth CEO David Carter said the result reflects the Group's strategy to deliver greater value for customers, and Banking's commitment to driving sustainable, profitable growth.

"Providing simple, innovative and relevant product offerings, complemented by fast and consistent service propositions is making it easier for new and existing customers to connect with banking solutions that meet their needs," Mr Carter said.

"Simplifying our processes and improving customer retention has helped deliver home lending growth of $1.1 billion and growth across business lending, primarily within the commercial and small business portfolios.

"A focus on growing savings and transaction banking solutions through better engagement with our customers and integrated customer offers has also been successful, with strong levels of new account openings.

"This has been achieved while maintaining our commitment to responsible and sustainable lending practices. We remain well placed within macro-prudential measures with year-on-year investor lending growth of 7.6% and new interest-only lending of 29% achieved for the quarter."

Credit quality performance remains strong with impairment losses of $5 million, or 4 basis points of gross loans and advances (annualised). Higher arrears reported in the second half of the 2017 financial year relating to changes in hardship operational practices and processes are stabilising, as the temporary impacts of the revisions have normalised.

The Bank has maintained its measured approach to managing funding and liquidity risk ensuring a strong and sustainable funding profile that supports balance sheet growth.

This includes the successful issuing of a $1.5 billion capital effective Residential Mortgage-Backed Security (RMBS) transaction, which further supports stability as reflected in the Net Stable Funding Ratio (NSFR) position, estimated to be 113% as at 30 September 2017.

Following the payment of the final 2017 financial year dividend to Suncorp Group, Banking's Common Equity Tier 1 ratio of 8.77% reflects a sound capital position within the operating range of 8.5% to 9.0%.

Ends

For more information contact:

Media

Alexandra Foley 0419 794 294

Investors

Andrew Dempster 0497 799 960

1 Suncorp-Metway Limited - ABN 66 010 831 722 - Level 28, 266 George Street, Brisbane Qld 4000 suncorpgroup.com.au

SUNCORP GROUP LIMITED ABN 66 145 290 124

SUNCORP APS 330

for the quarter ended 30 September 2017

RELEASE DATE: 2 NOVEMBER 2017

SUNCORP

APS330

BASIS OF PREPARATION

This document has been prepared by Suncorp Bank to meet the disclosure obligations under the Australian Prudential Regulation Authority (APRA) Australian Prudential Standard (APS) 330 Public Disclosure.

Suncorp Bank is represented by Suncorp-Metway Limited (SML) and its subsidiaries. SML is an authorised deposit-taking institution (ADI) and a wholly owned subsidiary of Suncorp Group Limited. Suncorp Group is represented by Suncorp Group Limited and its subsidiaries.

Other than statutory information required by a regulator (including APRA), all financial information is measured in accordance with Australian Accounting Standards. All figures have been quoted in Australian dollars and have been rounded to the nearest million.

This document has not been audited nor reviewed in accordance with Australian Auditing Standards. It should be read in conjunction with Suncorp Group's consolidated annual and interim financial reports which have been either audited or reviewed in accordance with Australian Auditing Standards.

Figures relate to the quarter ended 30 September 2017 (unless otherwise stated) and should be read in conjunction with other information concerning Suncorp Group filed with the Australian Securities Exchange (ASX).

DISCLAIMER

This report contains general information which is current as at 2 November 2017. It is information given in summary form and does not purport to be complete.

It is not a recommendation or advice in relation to the Suncorp Group and Suncorp Bank or any product or service offered by its entities. It is not intended to be relied upon as advice to investors or potential investors, and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with or without professional advice, when deciding if an investment is appropriate.

The information in this report is for general information only. To the extent that the information may constitute forward-looking statements, the information reflects Suncorp Group's intent, belief or current expectations with respect to our business and operations, market conditions, results of operations and financial condition, capital adequacy, specific provisions and risk management practices at the date of this report. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties, many of which are beyond Suncorp Group's control, which may cause actual results to differ materially from those expressed or implied.

Suncorp Group and Suncorp Bank undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to ASX disclosure requirements).

REGISTERED OFFICE INVESTOR RELATIONS

Level 28, 266 George Street, Andrew Dempster

Brisbane Queensland 4000 Head of Investor Relations

Telephone: (07) 3362 1222 Telephone: (02) 8121 9206

www.suncorpgroup.com.au andrew.dempster@suncorp.com.au

PAGE 2 FOR THE QUARTER ENDED 30 SEPTEMBER 2017

APS330

TABLE OF CONTENTS

SUNCORP

Basis of preparation 2 Overview 4 Outlook 4 Loans and advances 5 Impairment losses on loans and advances 6 Impaired assets 6 Non-performing loans 7 Provision for impairment 8 Gross non-performing loans coverage by portfolio 9 Appendix 1 - APS 330 tables 10 Appendix 2 - Slide pack 31 Appendix 3 - Definitions 35

FOR THE QUARTER ENDED 30 SEPTEMBER 2017 PAGE 3

Suncorp Group Ltd. published this content on 02 November 2017 and is solely responsible for the information contained herein.
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