SYDNEY, AUSTRALIA: ANZ announced an agreement to acquire Suncorp Bank from Suncorp Group Limited, accelerating the growth of its retail and commercial businesses while also improving the geographic balance of its business in Australia. The purchase price is $4.9 billion, a statement said.
Suncorp Bank will continue to be led by CEO Clive van Horen who will report to ANZ’s Chief Executive Officer and join ANZ’s Executive Committee post completion.
Suncorp Bank will initially operate under its existing Authorised Deposit-taking Institution licence with no changes to the total number of Suncorp Bank branches in Queensland for at least three years from completion.
Acquisition includes $47 billion of home loans with strong risk profile, $45 billion in high-quality deposits and $11 billion in commercial loans.
ANZ Chief Executive Officer Shayne Elliott said: “The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland.
“With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business. This will result in a stronger more balanced bank for customers and shareholders.
“We have admired the transformation that has occurred under the leadership of Steve Johnston and Clive van Horen and believe Suncorp Bank is a natural fit with ANZ given its culture, risk appetite and customer focus.
“ANZ has licenced the Suncorp Bank brand for five to seven years and we are committed to maintaining its current branch footprint in Queensland for at least three years post completion.
“This is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders,” said Mr Elliott.
Suncorp Bank will continue to be led by current CEO Clive van Horen. For team members, it is business as usual with no planned changes to employment conditions and the acquisition will not result in any net job losses in Queensland for Suncorp Bank for at least three years post completion.
“Importantly, the same great staff that serve customers today will serve customers tomorrow as members of the Suncorp Bank team and we are committed to building on the great service customers have already been experiencing,” Mr Elliott said.
Mr Elliott said: “ANZ is committed to making a meaningful contribution to the economic and social prosperity of Queensland and today’s announcement will see ANZ increase its presence, and we believe improve competition, in one of Australia’s most important regions.
“Since March 2020, Queensland has recorded better economic growth, better workforce participation and more interstate migration than any other state or territory in Australia. It contributes 18% to Australia’s GDP and we believe we can use the resources at our disposal to further contribute to its continued success.
“We opened our first branch in Brisbane in 1851 and since then we’ve built a great business in Queensland, particularly in Institutional banking.
“While we have an outstanding team already supporting our customers, we recognise in order to provide better services and improve competition for all Queenslanders we need to build on our existing retail banking presence.
“We know there will rightly be questions from Government and regulators about the competition aspects of this transaction. As the smallest of the major banks, we believe a stronger ANZ will be able to compete more effectively in Queensland offering better outcomes for customers,” he said.
ANZ will also look to use its experience in sustainable finance to support Queensland’s ambition to reduce carbon emissions, as well as providing funding for Brisbane 2032 Olympics green infrastructure.
“While we already play a key role in supporting Queensland customers, particularly those exporting goods overseas, we recognise our role in assisting the State as it transitions to a lower carbon future. This is a key reason why we have set aside $15 billion of new lending to support the Government’s ambition of 50% renewable energy by 2030 and green infrastructure for the 2032 Olympic Games,” Mr Elliott said.
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