The acquisition for ANZ includes $47 billion of home loans with strong risk profile, $45 billion in high-quality deposits and $11 billion in commercial loans.
This comes following ANZ offloading its $715 million share investment lending portfolio to Bendigo Bank earlier this month.
The acquisition is subject to a minimum completion period of 12 months and to certain conditions including:
- Federal Treasurer approval.
- Authorisation by the Australian Competition and Consumer Commission (ACCC).
- Approval and certain amendments to the State Financial Institutions and Metway Merger Act 1996 (Qld).
This means completion of ANZ's acquisition is expected in the second half of 2023.
ANZ Chief Executive Officer Shayne Elliott notes the acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland.
“ANZ has licensed 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," Mr Elliott said.
“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 is a growth strategy for ANZ and we will continue to invest in Suncorp Bank and in Queensland for the benefit of all stakeholders."
ANZ notes Suncorp Bank will initially operate under its existing Authorised Deposit-taking Institution (ADI) license with no changes to the total number of Suncorp Bank branches in Queensland for at least three years following acquisition completion.
“We know there will rightly be questions from government and regulators about the competition aspects of this transaction," Mr Elliott said.
"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."
Mr Elliott notes staff that serve customers across Suncorp branches today will continue to serve customers tomorrow as members of the Suncorp Bank team.
Suncorp Group's insurance arm is not included in the acquisition, with the Group continuing to offer services from Suncorp, AAMI, GIO, Shannons, APIA and Vero.
Suncorp Group CEO Steve Johnston said as a dedicated insurance business, Suncorp will be singularly focused on meeting customer and community needs at a time when the value of insurance has never been greater.
“Suncorp will continue to be at the forefront of advocating for a more resilient Australia and for all levels of Government to focus on mitigating the impacts of major weather events through improved public infrastructure, subsidies to improve private dwellings and an overhaul of planning laws," Mr Johnston said.
This follows NAB's acqusition of Citi Australia, completed a couple of months ago.
Image by Robert Linder via Unsplash
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