SUNCORP GROUP LIMITED — Audit Report / Information 2010

May 5, 2010

6 May 2010

SUNCORP BANK APS 330 DISCLOSURES

Suncorp-Metway Limited today released a brief presentation to accompany its Bank APS 330 quarterly disclosures.

The presentation and APS 330 tables are attached.

There will be a teleconference involving Patrick Snowball, Group CEO, and David Foster, Suncorp Bank CEO, at 2.30pm AEDT today.

Teleconference details:

Australia dial in: 1800 148 258 International dial in: +61 2 8524 6650 Conference ID: 72295825

ENDS

For more information:

Analysts / investors contact: Mark Ley +61 (0)411 139 134 Peta Johnson +61 (0)434 072 113 Media contact: Michelle Barry +61 (0)402 892 789 Jamin Smith +61 (0)409 170 035

SUNCORP-METWAY LTD

APS 330 DISCLOSURE : TABLE 16 CAPITAL ADEQUACY 31 MARCH 2010

	Risk Weighted Balance 31-Mar-2010 $m
On-Balance Sheet Risk Weighted Assets Cash items Claims on Australian and foreign governments Claims on central banks, international banking agencies, regional development banks, ADIs and overseas banks Claims on securitisation exposures Claims secured against eligible residential mortgages Past due claims Other retail assets Corporate Other assets and claims Total Banking assets Off balance sheet positions Guarantees entered into in the normal course of Business Commitments to provide loans and advances Capital commitments Foreign exchange contracts Interest rate contracts Securitisation exposures Total off balance sheet positions Total Credit Risk capital charge Market risk capital charge Operational risk capital charge Total risk weighted assets Risk weighted capital ratios Tier 1 Total risk weighted capital ratios	34 1 890 112 10,748 3,099 1,000 17,479 450
	33,813 101 855 16 156 78 203
	1,409
	35,222 591 2,994
	38,807
	%
	12.452%
	14.195%

SUNCORP-METWAY LTD APS 330 DISCLOSURE : TABLE 17 CREDIT RISK 31 MARCH 2010

Table 17A: CREDIT RISK BY GROSS CREDIT EXPOSURE - OUTSTANDING AS AT 31 MARCH 2010

Table 17A: CREDIT RISK BY GROSS CREDIT	EXPOSURE - OUTSTANDING AS AT 31 MARCH 2010
31-Mar-2010	Receivables due from other banks Trading securities Investment securities Loans, advances and other receivables Credit commitments Derivative instruments $m $m $m $m $m $m	Total Credit Risk $m	Impaired assets Past Due not Impaired > 90days Total not past due or impaired Specific Provisions $m $m $m $m
Agribusiness Construction and development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government and public authorities Other commercial and industrial Total gross credit risk Eligible securitised loans Total including eligible securitised loans Impairment provision TOTAL	- - - 3,294 15 - - - - 5,718 68 - 181 7,027 3,166 3,336 156 933 - - - 1,330 - - - - - 766 - - - - - 488 - - - - - 5,992 - - - - - 26,182 1,137 - - - - 594 - - - - - 5 - - - - - 3,315 270 -	3,309 5,786 14,798 1,330 766 488 5,992 27,319 594 5 3,585	206 32 3,070 63 1,463 128 4,194 391 - 0 14,798 - 104 3 1,224 23 10 9 747 7 5 2 481 2 319 36 5,637 82 23 191 27,105 10 - - 594 - - 13 (8) - 80 13 3,492 21
	181 7,027 3,166 51,020 1,646 933 - - - 2,643 - -	63,972 2,643	2,211 426 61,334 599 2,643
	181 7,027 3,166 53,663 1,646 933	66,615 (819)	2,211 426 63,978 599 (597) (29) (193)
		65,796	1,614 397 63,785 599

Table 17A: CREDIT RISK BY GROSS CREDIT EXPOSURE - AVERAGE GROSS EXPOSURE OVER PERIOD - 01 JANUARY 2010 to 31 MARCH 2010

Table 17A: CREDIT RISK BY GROSS CREDIT	EXPOSURE - AVERAGE GROSS EXPOSURE OVER PERIOD - 01 JANUARY 2010 to 31 MARCH 2010
31-Mar-2010	Receivables due from other banks Trading securities Investment securities Loans, advances and other receivables Credit commitments Derivative instruments $m $m $m $m $m $m	Total Credit Risk $m	Impaired assets Past Due not Impaired > 90days Total not past due or impaired Specific Provisions $m $m $m $m
Agribusiness Construction and development Financial services Hospitality Manufacturing Professional services Property investment Real estate - Mortgage Personal Government and public authorities Other commercial and industrial Total gross credit risk Eligible securitised loans Total including eligible securitised loans Impairment provision TOTAL	- - - 3,323 18 - - - - 5,868 107 - 152 7,039 3,107 3,038 156 882 - - - 1,380 - - - - - 789 - - - - - 512 - - - - - 6,180 - - - - - 25,942 1,130 - - - - 595 - - - - - 6 - - - - - 3,531 315 -	3,341 5,975 14,373 1,380 789 512 6,180 27,072 595 6 3,846	208 34 3,099 64 1,416 115 4,443 348 - 0 14,373 - 69 3 1,307 23 12 10 767 7 7 2 502 3 318 23 5,839 93 25 159 26,887 12 - - 595 - - 6 (0) - 160 7 3,678 49
	152 7,039 3,107 51,163 1,725 882 - - - 2,759 - -	64,067 2,759	2,215 361 61,491 598 2,759
	152 7,039 3,107 53,922 1,725 882	66,826 (820)	2,215 361 64,250 598 (597) (29) (193)
		66,007	1,618 346 64,042 598

Table 17B: CREDIT RISK BY PORTFOLIO

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Charges for
Specific
Gross Credit Risk Average Gross Past Due not Impaired Specific Provisions & Write-
31-Mar-2010 Exposure Exposure Impaired assets > 90days Provisions offs
$m $m $m $m $m $m
Claims secured against eligible residential mortgages 27,319 27,072 23 191 10 -
Other retail 594 595 - - - 6
Financial services 14,798 14,373 - 0 - -
Government and public authorities 5 6 - 13 - -
Corporate and other claims 21,256 22,021 2,189 223 589 97
Total 63,972 64,067 2,211 426 599 103
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Table 17C: GENERAL RESERVES FOR CREDIT LOSSES

Table 17C: GENERAL RESERVES FOR CREDIT LOSSES	Table 17C: GENERAL RESERVES FOR CREDIT LOSSES
31-Mar-2010	$m
Collective provision for impairment Ineligible CP on Past Due not Impaired Eligible Collective Provisions FITB relating to collective provision Equity Reserve for credit lossess General Reserve for Credit losses	222 (29)
	193 (58) 272
	407

Provision for impairment

Provision for impairment	Q3	as at Mar‐10
	Core	Non‐Core	Total
	$M	$M	$M
Collective Provision
Balance at the beginning of the period	35	188	223
Charge against contribution to profit	17	(18)	(1)
Balance at the end of the period	52	170	222
Specific provision
Balance at the beginning of the period	46	551	597
Charge against impairment losses	(6)	39	33
Charge against interest income	(3)	(28)	(31)
Balance at the end of the period	37	562	599
Total provision for impairment ‐ Banking Activities	89	732	821
Equity reserve for credit loss
Balance at the beginning of the period	55	236	291
Transfer to/from retained earnings	27	(46)	(19)
Balance at the end of the period	82	190	272
Pre‐tax equivalent coverage	118	271	389
Total provision for impairment and equity reserve for credit loss coverage	207	1003	1209
Provision for impairment expressed as a percentage of gross impaired assets are as follows:
Collective Provision	38.6%	8.2%	10.0%
Specific Provision	27.4%	27.1%	27.1%
Total Provision	65.9%	35.3%	37.1%
Equity reserve for credit loss coverage	87.3%	13.0%	17.6%
Total provision and equity reserve for credit loss coverage	153.3%	48.3%	54.7%
Impaired Assets	Q3	as at Mar‐10
	Core	Non‐Core	Total
	$M	$M	$M
Gross balances of individually impaired loans	135	2076	2211
Specific provisions for impairment	(37)	(562)	(599)
Net individually impaired loan	98	1514	1612
Past due loans not shown as impaired	239	187	426
Gross non performing loans	374	2263	2637
Gross individually impaired assets as a percentage of gross loans	0.37%	13.99%	4.29%
Gross non performing loans as a percentage of gross lonas	1.02%	15.25%	5.11%
Gross individually impaired assets as a percentage of impairment provisions and ERCL coverage	65.25%	207.02%	182.80%
Impairment Provisions and ERCL coverage as a percentage of credit risk weighted assets	1.00%	6.89%	3.43%
Impairment losses on loans and advances	Q3	as at Mar‐10
	Core	Non‐Core	Total
	$M	$M	$M
Collective provision for impairment	17	(18)	(1)
Specific provision for impairment	(6)	39	33
Actual net write offs	9	62	71
Total	20	83	103

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Suncorp Bank – APS 330 update 6 May 2010

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Key dates 2010

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Bank APS Bank strategy General Life strategy FY10 Suncorp
330 update update Insurance update Group result
Investor Day
Quarterly Positioning and
covering both the core and disclosure APS 330 Positioning and strategy of core franchise. Commercial strategy of Insurance, Personal on life insurance Strategic update business. FY10 result plus Group strategic overview.
non-core bank. Insurance and
Vero NZ.
6 May 7 May 21 May 23 June 25 August
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2

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The Suncorp Group
Group
• view of our 9 million customers
Capital and credit One • approach to financial processes Lean strong corporate
ratings benefits • view of employees Shared Group services
Unique businesses
National General Insurer Regional Bank Niche Life Insurer
• Leading General Insurance operations in both • Regional Bank
Australia and New Zealand with HQ in QLD • Niche national
• Scale and iconic brands • Able to grow life insurance
business
• selectively in
End-to-end control of our brands, pricing, other profitable • Independent
manufacturing and distribution
markets • Strong IFA
• Leader of 2 [nd] tier Channel
banking sector
• Benefit of rating
Personal Commercial
Vero NZ uplift from the
Insurance Insurance
Suncorp Group
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3

Core bank: deposits and lending assets

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Total deposits growth, March 2010 Core lending assets, A$b
36.8 36.8 36.6 36.7
1.69%
1 month 0.76% 3.6 3.5 3.4 3.4 Agribusiness
4.3 4.3 4.1 4.1
4.89% 0.6 0.6 0.6 0.6
3 months
2.60%
Commercial
8.96% (SME)
6 months
3.66%
28.3 28.4 28.4 28.6
Consumer
12 12.58%
months 7.11%
Suncorp APRA System Housing
Jun-09 Sep-09 Dec-09 Mar-10
Suncorp historical mortgage growth v RBA system
Summary
(12 month rolling)
16% • Deposit growth ahead of system over 1, 3, 6
14% and 12 months
12%
10% • Deposit to loan ratio at 71.8% and above
8% funding target
6%
4% • Deposit accumulation now enables increased
2%0% lending growth in core markets
• Key short term focus to return to system
lending growth
System growth Suncorp growth 4
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Non-core bank: assets

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• Run-off of $3.1 billion year to date, ahead of initial target by $0.9 billion

• Total facility limits have been reduced by over $4.5 billion year to date

• Seeing positive signs in the market with refinancing appetite for selected larger exposures beginning to emerge

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Non-core assets, A$b
17.5
15.6
1.5 14.4
1.1
1.0
6.6
5.9
5.5
6.1 5.6 5.2
3.3 3.0 2.7
Jun-09 Dec-09 Mar-10
Corporate Development Finance
Property Investment Lease Finance
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Forecast run-off, A$b
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Actual run-off ahead of
target by $0.9bn
20
Expected
18
Actual
16
14
12
10
8
6
4
2
-
Jun-09 Dec-09 Jun-10 Dec-10 Jun-11 Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14
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5

Core bank: credit quality

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Total retail arrears to gross loans (past 90 days due)
0.63%
0.60%
0.39%
0.26% 0.39%
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Impairment losses on loans and advances

A$m	Q3 FY10	YTD
Collective provision charge	17	(2)
Specific provision charge	(6)	(2)
Actual net write-offs	9	26
Impairment loss	20	22
Impairment charge to Credit RWA	0.40%	0.14%

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Core gross non-performing loans trends, A$m
312 249 174 172 239
108 145 153 142 135
Mar-09 Jun-09 Sep-09 Dec-09 Mar-10
Impaired assets > 90 days
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Summary

• BDD expense increased in Q3 however YTD charge is very low at 23bp of credit risk weighted assets (adjusting for collective provision methodology change in 1H)

• Increase in mortgage arrears in the last quarter, off a low base, as interest rates have increased and the benefits of government stimulus payments have been removed

• Business lending arrears have been stable for the quarter although reduced credit grades are reflected in the collective provision charge

6

Non-core bank: credit quality

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Impaired asset movements, A$m Provisions, A$m
Specific provision
Collective provision
241 240 New Equity Reserve for Credit Loss Coverage
2,077 2,076 methodology
380 337 271
190
188 170
228 235
551 562
435 426
Dec-09 BBP & other New impaired Mar-10
assets Jun-09 Sep-09 Dec-09 Mar-10
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Impairment losses on loans and advances

A$m	Q3 FY10	YTD
Collective provision charge	(18)	(58)
Specific provision charge	39	194
Actual net write-offs	62	219
Impairment loss	83	355

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Impairment loss trend, A$m
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First quarter of half Second quarter of half
Total Bank Non-core
219
282
146
136 126
38 73 83
18
2H08 1H09 2H09 1H10 Q310
Reporting periods prior to core / non-core reporting split.
Total Bank charges are materially non-core
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7

Bank Funding and Liquidity

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Funding Composition: Total bank
Short term wholesale
26% 17%
Long term wholsale
52%
Deposits
100% Capital and other
51%
Liquids and other
7% assets
Loans/Liquids Funding Loans
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Funding Composition: Total bank

• Secured 2010 funding program with ability to target opportunities as they arise

• • Strong liquids covering all short term exposures

• Increased non-core run-off and strong deposit momentum allows greater liquidity and funding management flexibility

Non-core portfolio: funding maturity profile (2010 – 2016), A$m

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6,000
4,000
2,000
0
-2,000
-4,000
-6,000
Non-core loan portfolio run down Long term funding Excess Long Term Funding Cumulative funding position
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8

Bank Capital

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Movement in risk weighted assets, A$bn Bank capital ratios
0.4 (1.5) 12.77% 13.70% 14.16%
40.0 1.74% 1.69%
10.67% 1.46%
(0.1) 1.84% 5.53% 5.72% 5.90%
38.8
4.94%
5.78% 6.24% 6.57%
3.89%
Dec-08 Jun-09 Dec-09 Mar-10
Dec-09 Core growth Non-core loan Non-core off- Mar-10
reduction balance sheet Tier 2 Capital Other Regulatory T1 Capital AFT1
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Summary
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• Capital ratios are strong and continue to improve

• AFT1 growing strongly and is now at 6.57%

• Shareholder equity backing the non-core bank is just under $1.5 billion including $1.06 billion in AFT1.

• The amount of the non-core equity released will be impacted by the net profit/loss after tax over the full run-off period

• The timing of the release of capital to the Group is dependent on the run-off profile

9

Questions

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To ask a question, when instructed, please press ‘*1’ on your telephone keypad

10

Disclaimer

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This presentation contains general information which is current as at 6 May 2010. It is information given in summary form and does not purport to be complete.

It is not a recommendation or advice in relation to Suncorp-Metway Limited or any product or service offered by the Suncorp Group. 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.

This report should be read in conjunction with all other information concerning SuncorpMetway Limited filed with the Australian Securities Exchange.

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’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’s control, which may cause actual results to differ materially from those expressed or implied. Suncorp undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this report (subject to stock exchange disclosure requirements).