New Suncorp Chief Executive Patrick Snowball has revealed the bank's intention to return excess capital to shareholders, although the interim dividend was slashed on the back of a lackluster profit today.

The Queensland-based diversified bank reported its profit to be $364 million, increased by 41 per cent on the same time last year; however, the stock witnessed a steep fall.

"You saw our capital", Suncorp Chief Patrick Snowball said to analysts at a briefing yesterday. "It's fine. It's good. We've got strength in there".

Suncorp is reported to drop over 6.3 per cent to $8.63, and by late afternoon its shares registered a slip of 55 cents, or 6 per cent, at $8.66. The benchmark S&P/ASX 200 was 1.3 per cent lower.

Moreover, the first-half dividend was reduced from 20 cents to 15c, fully franked; however, investors were disappointed that the profit-gain was fueled basically due to general insurance.

The net profit for that division was up 89 per cent to $347m, while banking profit was just $4m.

Mr. Snowball, a former British military chief, posted he believed that investors would come to construe Suncorp's strategy more clearly in the next few months.