Suncorp has seen its profits hit hard by the impact of natural disasters, but has claimed bad debts as a result of the disasters have not caused significant losses.

The banking group saw its full-year profits fall 42% from 2010, largely impacted by its insurance arm paying out $4bn in claims across Australia and New Zealand. Suncorp's core banking business reported profit after tax of $259m, down from $268m in 2010.

While natural disasters impacted the second tier's home loan customers in Queensland, Suncorp claimed it did not lead to a rise in bad debt. Impaired loans remained stable for the bank at $51m, and said it had included a $25m provision for additional impaired loans as a result of the floods.

"To date, actual losses have been immaterial," the bank said.

Suncorp's non-cire banking business saw an after tax loss of $175m, down from a $224m loss last year. Impairment losses in the bank's non-core portfolio were also down, falling to $274m from $428m in 2010.