Suncorp chief departs, amid growth challenges
Suncorp chief Michael Cameron will leave the business after four years with the group.
Group chief financial officer Steve Johnston will take on the job as acting CEO while Jeremy Robson will take on the job as acting group CFO. Robson has been with Suncorp for six years and was most recently its deputy CFO.
Cameron will remain in the business until August following the release of Suncorp’s full year results.
In his assessment of the departure, Morningstar bank analyst David Ellis said: “Despite some success in restructuring the business, establishing a stronger customer focus and improving operational efficiency, Cameron was unable to increase earnings growth sufficiently”.
While, Suncorp’s first-half fiscal 2018 results revealed a fall in earnings, Morningstar remained positive over the long-term but at the time, Ellis said: “any slip up will put increasing pressure” on Cameron.
For Ellis, the bank’s financial performance under Cameron – who began in late 2015 has been “underwhelming”.
Cash earnings fell 8 per cent in fiscal 2016, increased 3.6 per cent in fiscal 2017 and Morningstar forecasts a 7 per cent decline in fiscal 2018 – “not an inspiring track record”.
Ellis notes that Johnston is well positioned to drive the business forward.
“Suncorp is making good progress on the execution of the business and marketplace acceleration strategies.
“The acting CEO is well placed to cope with the challenging operating conditions.”