Suncorp to hike FY dividend

Group will pay full-year dividend of 75c, including special dividend.

Suncorp Group Ltd will pay a higher than expected full year dividend of 75 cents after finalising the $940 million sale of its non-core asset portfolio to Goldman Sachs.

Suncorp Financial said it would pay a final ordinary dividend of 30 cents per share and a special dividend of 20 cents, above market expectations, and an increase on the 20 cents and 15 cents respectively in fiscal 2012.

Suncorp said "with the overhang of the non-core bank removed" the group was in a position to pay "well above" its dividend payout guidance of 60% to 80% of cash earnings.

Net profit from core businesses was expected to fall between $1.21 million to $1.25 million, up from $1.033 million last year and at the upper end of market expectations.