Suncorp group Limited’s [ASX:SUN] share price has spiked in today’s trading. The stock is at $15.86 a share, up 5.80%, at the time of writing.
Suncorp’s recent Directors’ report detailed some promising signs for shareholders.
Suncorp Group Limited share price set to deliver?
After an intense year activity in the wake of the royal commission, Suncorp has provided major pieces of infrastructure and technology.
By making important forward-looking investments Suncorp saw strong financial returns and a net profit after tax of $1.059 billion, which could be contributing to the spike in shares that we see today.
The board has announced a final ordinary dividend of 40 cents per share and a special dividend of eight cents per share, bringing the total dividend for 2017–18 to 81 cents per share.
The company has delivered a cash return on average shareholders’ equity of 8% for the financial year.
Momentum has been gathering for the company which was reflected across their growing business, amid a pleasant economic environment. This could set good expectations for the 2018–19 operating year and share price.
Momentum for Suncorp Group Limited share price
Suncorp will continue to build its business around customer satisfaction and maintain its external reputation. Their key target for 2018–19 is a cash return on equity of 10% which will be driven by a top line growth if 3–5%.
One of the ways Suncorp plans to do this is through driving momentum and growth. The company will focus on meeting regulatory commitments, investing in core systems, improving operational excellence through the Business Improvement Program (BIP) and being involved in disciplined portfolio.
This, along with meeting shareholders’ expectations and achieving financial targets should see more positive impacts to Suncorp’s share Price.
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