CHAIRMAN OF AUSTRALIA'S SUNCORP-METWAY TO RETIRE AT NEXT AGM

Suncorp-Metway Ltd (ASX:SUN) chairman John Story will retire at the Australian banking and insurance group's upcoming annual general meeting (AGM).

"With continued evidence of the stabilisation of the operations of the group and the redevelopment of its momentum, it is appropriate that we complete the renewal of the board with the transition to a new chairman," Mr Story said in a shareholder review released on Monday.

"I have decided, with the support of the board, that I will retire at the 2011 annual general meeting.

"This timing will enable a planned and orderly process of transition."

Suncorp's AGM will be held in Brisbane on November 4.

Mr Story retires by rotation at the AGM. He said he would stand for re-election, but, if re-elected, would serve only one year of the extended term.

Five directors on the Suncorp board have retired since the group's last AGM.

Suncorp-Metway doubled its annual profit in 2009/10, the first year of its three-year turnaround plan.

Annual profit rose to A$780 million (US$757.77 million), from $348 million in the prior year.

"While the board is encouraged by the improved financial outcome, we are acutely aware that this growth was from an unacceptably low base, and that much more is required to regain the ground lost over the past two years," Mr Story said on Monday.

"We are, however, confident that the foundations are now in place to see this achieved."

Mr Story said Suncorp was now well on the path towards realising the full extent of the substantial potential within each of its businesses.

"Given continued fair winds, we anticipate the emergence of capital that is surplus to the requirements of the group, and it is our intention that this be returned to shareholders," Mr Story said.

"I stress that this will be subject to a substantial resolution of the existing uncertainties within the external markets, and only when it is fully prudent to do so having regard to the circumstances within the group."

Suncorp chief executive Patrick Snowball said Suncorp's capital position was much improved, but it was prudent to maintain capital buffers, given the economic and regulatory uncertainty.

Suncorp shares were 20 cents higher at $8.97 at 1258 AEDT on Monday.