The Suncorp Group Ltd (ASX: SUN) share price is soaring today after the company released its financial year 2021 (FY21) results.
Suncorp not only announced a 42% increase to its cash earnings over the year ended 30 June 2021 – beyond the earnings analysts had predicted – but also a $250 million on-market buyback.
The market's responded positively to the news, boosting the Suncorp share price 8.77% higher. Right now, shares in the banking and insurance company are swapping hands for $12.90 apiece.
Even more exciting, today saw Suncorp reach a new 52-week high. The company's shares were trading for $12.92 apiece at their intraday high.
Let's take a closer look at Suncorp's FY21 results.
The year that's been for Suncorp
Suncorp's results for FY21 have seen the company's share price soar.
This morning, Suncorp reported it had earned around $1.06 billion of cash earnings over the year and brought in a net profit after tax of approximately $1.03 billion – 13% more than the previous financial year.
It also announced it will hand its shareholders a 40 cent final dividend as well as an 8 cent special dividend. Both will be fully franked.
Suncorp's chair Christine McLoughlan said the dividend and share buyback combined will see $1.2 billion returned to Suncorp shareholders.
Over FY21, 47% of the company's income came from its insurance division, with the banking and wealth division bringing in another 36%. Suncorp New Zealand drummed in the rest.
Unfortunately, Suncorp wasn't able to give a strong outlook for FY22. However, it's confident it will perform well in FY23.
It plans to start investing in strategic growth initiatives that are expected to see results midway through FY22 and come to fruition in FY23.
Suncorp share price review
The year that's been has seen the Suncorp share price performing well on the ASX.
Right now, it's almost 50% higher than it was this time last year. It is also up 30% year to date.
Suncorp has a market capitalisation of around $16.4 billion, with approximately 1.2 billion shares outstanding.
