Banking, insurance and financial services big hitter Suncorp Metway was floored when chief executive John Mulcahy resigned, after the bank announced its interim after-tax profit to be between $250 million and $270 million after being hit with significantly higher bad debt charges.
Suncorp said its bad debt expenses for the half year to December 31, 2008, would rise to $355 million - "significantly above forecasts," it said - on specific provisions and write-offs.
Suncorp said its board would declare an interim dividend of 20 cents per share, fully franked, down from 52 cents per share for the previous corresponding period.
Interim profit before tax and items, including those related to the Promina acquisition, will be between $470 and $500 million, Suncorp said in a statement.
Mr Mulcahy has agreed to stay on while the company looks for a new chief executive.
