Queensland-based banking and insurance company Suncorp has reported a 32.2 per cent fall in its annual profit.

It has recorded a net profit after tax of $491 million, down from $724 million in the previous year.

Suncorp will pay a final dividend of 30 cents per share, and a special dividend of 20 cents per cent.

Its banking arm recorded a $343 million loss, after it sold a significant portfolio of mostly bad loans at a loss to get it off its books.

The company expects cost-saving measures to improve its profitability over the next few years.

"Simplification initiatives will continue to deliver benefits ahead of plan, providing $225 million in expected cost savings in the 2015 financial year and $265 million in the 2016 financial year," it said in a statement to the share market.