Another big bank is set to swallow up a smaller competitor with ANZ confirming it has agreed to buy Suncorp’s banking business.
ANZ will pay $4.9 billion dollars to acquire Suncorp Bank.
ANZ Chief Executive Shayne Elliott described Suncorp as an “attractive business.”
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“They’ve done [the] hard yards of getting their business into a great shape and… there’s a lot of affinity with ANZ – really similar cultures, really purpose-driven organisations,” Mr Elliott said.
“We’ve been in Queensland since 1851 [and] we’ve got a really good business there, predominantly focused on Institutional banking. This rounds out our capabilities across the state and is a platform for growth.”
The deal will see ANZ take on Suncorp’s $47 billion in home loans along with $45 billion in deposits and $11 billion in commercial loans.
ANZ has been placed in a trading halt as it looks to raise $3.5 billion to fund the takeover.
Mr Elliott has confirmed that Suncorp Bank would remain a separate brand “for a period of time” as the company assesses its long-term outlook and strategy.
The bank has promised to retain all of Suncorp’s current branches in Queensland for at least the next three years.