23 August 2012 6:52am

While most banks have responded to the weak demand for credit and high funding costs over the past year by keeping growth targets modest and reining in costs, Suncorp Bank has done the opposite.

Suncorp reported yesterday that its banking division grew above system in the mortgage and business lending markets, and it incurred a high level of expense growth as it invested in "regaining its brand presence".

Growth in the Queensland-based bank's housing loan receivables was 9.6 per cent in the year to June, compared with system growth of 5.4 per cent.

Business lending...