Suncorp bank

The Suncorp Group Ltd (ASX: SUN) share price is on watch after it announced plans to sell its banking business for around $5 billion.

ANZ will also pay Suncorp at least $50 million to continue using the Suncorp Bank brand for five years following the sale. ANZ is committed to growing its presence in Queensland and I am pleased about the commitments they are making to our customers and employees. Suncorp expects to rake in $4.1 billion in net proceeds from the sale – representing $3.21 per share.

Queensland jobs and bank branches to be protected for at least three years under terms of the takeover.

Suncorp was previously Queensland’s State Government Insurance Office, which traces its origins to 1916. “The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland,” he said. Under the deal, ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47bn in home loans and $45bn in deposits.

After more than three years of offloading assets to simplify the business around its strengths in insurance, Suncorp Group (ASX: SUN) has today announced ...

This will result in a stronger more balanced bank for customers and shareholders," Elliott says. "By combining with a larger banking group, Suncorp Bank will be well positioned for the future. "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," Elliott says. ANZ chief executive officer Shayne Elliott describes the acquisition as a cornerstone investment for the group and a "vote of confidence in the future of Queensland". Suncorp Group's CEO Steve Johnston explains that as a dedicated insurance business the group will be singularly focused on meeting the needs of its customers and community at a time when "the value of insurance has never been greater". After more than three years of offloading assets to simplify the business around its strengths in insurance, Suncorp Group (ASX: SUN) has today announced the sale of its banking division to Big Four bank ANZ (ASX: ANZ) for $4.9 billion.

The bank confirmed its raising fresh capital to finance its $4.9 billion purchase of Suncorp Bank and pledged to keep its branches open for three years.

“A couple of years ago the balance sheet was contracting. But he refused to detail the sale process – Street Talk had revealed Bendigo Bank’s attempts at making an offer were rebuffed. But with deal making and growth comes complexity around execution, writes Chanticleer columnist James Thomson. James Eyerswrites on banking, fintech and technology. That includes requiring the head office to be located in the state and the managing director to reside there, along with key functions such as treasury operations. The bank has started growing again after malaise in previous years. We had low level of confidence amongst our broker partners in terms origination. ANZ will also use Suncorp’s brand for at least five years, with the bigger institution paying a $10 million annual fee for that right. Suncorp also has experience in “white-labelling” its name with life insurance products underwritten by TAL Dai-ichi. That is important with the bid also needing clear approval from Treasurer Jim Chalmers. “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,” Mr Elliott said. Branch numbers though have already been heavily cut by Suncorp.

ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47 billion in home loans and $45 billion in deposits.

"Our purpose of building futures and protecting what matters - the focus of our company for over 100 years - will remain at our core and enable our people to deliver on our vision to create the leading trans-Tasman insurance company," she 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." There would be no job losses or changes to the number of Suncorp Bank branches in Queensland for at least three years after the deal was completed, ANZ said. ANZ chief executive Shayne Elliott said the "massively transformational deal" would see ANZ boost its presence in Queensland to the levels it had in Victoria and NSW, adding about a million customers to its stable of six million. Trading in ANZ shares was halted as the deal was announced on Monday after the bank said it would need to raise about $3.5 billion to fund the buyout. ANZ has agreed to buy Suncorp's banking business for $4.9 billion in Australia's biggest banking deal in a decade, and one the big-four lender describes as a vote of confidence in Queensland.

ANZ buyout promises fresh chance at digitisation and core modernisation. ANZ Banking Group will buy Suncorp Bank for $4.9 billion, with plans to bring retail ...

the platform for growth”. “We invested heavily behind the ANZ brand to lift it up to a similar level to the National Bank and they worked very hard about removing any friction for customers as they migrated across from [National Bank of New Zealand] to ANZ.” Elliott said after ANZ's acquisition in 2003 of the Bank of New Zealand, the two “ran as two brands, two systems, two of everything for 10 years.” In an analyst call, Suncorp CEO Steve Johnston highlighted that among merits of the transaction “serves to benefit Suncorp customers and staff over the region, with customers able to benefit from the many technology initiatives that ANZ currently have in development”. Meanwhile, commercial customers of Suncorp Bank will be offered a broader product selection, with access to the ANZ GoBiz, which integrates into accounting software for fast business loan an overdraft approvals. ANZ Banking Group will buy Suncorp Bank for $4.9 billion, with plans to bring retail customers onto the ANZ Plus platform, while giving commercial customers access to more ANZ products.

The deal, one of the biggest in the banking sector in years, will need the green light from the consumer watchdog and federal Treasurer Jim Chalmers, ...

It is not, as the bank claims, an investment in Queensland ... This deal is all about profits for the ANZ Bank,” said secretary Julia Angrisano. ANZ on Monday also released a trading update , saying it had helped to turn around the performance of its home lending business, which posted 3 per cent growth in loans during the quarter. The deal, which comes after ANZ’s retail banking business has struggled in recent years due to delays in its mortgage processing, is targeted at bulking up ANZ’s presence in the home loan market, where it is the country’s fourth-biggest lender. It’s going to be interesting to see where the ACCC lands on this.” It is selling the new ANZ stock at $18.90, which is a 12.7 per cent discount to its last trading price. “If it does go through, does it materially alter the banking landscape? “We will be driving a hard bargain to ensure the new entity’s Queensland presence is preserved. “I’ve always been sceptical that an Australian major bank would be allowed to participate in any further consolidation. “It does give [ANZ] a larger customer base where they could grow more strongly than we’re currently factoring in, but there is a lot of risk around even retaining the existing business you have, let alone growing it. “They’re doing an equity raising, which is a pretty big discount to our valuation. But you can’t argue that it’s good for competition, you’re losing one of the top 10 largest home lenders. He also promised there would be no Suncorp job losses in the bank’s home state.

ANZ is seeking $3.5 billion from its shareholders to buy Suncorp's banking unit. But how will the deal be done and is it a good one for its smaller ...

ANZ says the deal will be neutral for its earnings per share (EPS) for the present financial year. As for Suncorp, the group will receive $4.9 billion of cash from ANZ, which it says will yield net proceeds of $4.1 billion. He is based in Sydney. Connect with Jonathan on The structure seems deliberate after ANZ’s ill-fated 2015 capital raising. But if ANZ slips below the offer price, they will effectively be worthless. But with growth comes complexity. The retail offer closes around one month from now on Monday 15 August. Suncorp says its intention is to “return the majority of proceeds to shareholders”. So, all things being equal, shareholders of Suncorp should expect a cash distribution of up to 30 per cent of its value as the banking business is transformed into a $4.1 billion pile of cash. This, it said represents an estimated value of $3.21 per share (based on the accounting value of the banking business and the number of Suncorp shares on issue). The first order of business for ANZ shareholders is t he $3.5 billion of new financing the bank is seeking to fund the transaction. That sale begins on Monday to existing institutional investors of ANZ (such as super funds and fund managers) who can either take up the shares if they like the price or they can sell their entitlement to buy the shares at the $18.90 price later in the week. The new shares are being issued at a price of $18.90 which is a 12.7 per cent discount to Friday’s closing price of $21.64.

The major bank on Monday announced its $4.9 billion agreement to buy the banking arm in an effort to create a stronger, more balanced bank for customers. ANZ ...

“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.” Trading in ANZ shares was halted as the deal was announced on Monday as the bank goes to shareholders to raise about $3.5 billion to fund the deal. “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,” Elliott said.

The Suncorp Group Ltd (ASX: SUN) share price is sky high after the company accepted a near-$5 billion takeover bid for its banking namesake.

The sale of Suncorp Bank is the company’s latest move to simplify its business. Finally, the big bank has promised $10 billion of lending for Queensland businesses over the next three years. Suncorp expects to reap $4.1 billion of net proceeds from the sale. The move is said to support its goal to become Trans-Tasman’s leading insurance provider. It will also maintain its head office in Brisbane. That represents a $1.3 billion premium on the bank’s net tangle assets.

The bank sale might help Suncorp focus, but will investors close a historical discount against its insurance rival IAG?

Mr Cameron insisted this was not a reanimation of the cross-selling idea but investors and staff just never warmed to it. Industry sources point out that simple differences hamstrung this notion: the products were too different; consumers did not want to buy them together; and bankers selling large products such as loans might not have wanted to sell smaller insurance offerings. The reason for the gap to close was due to a “simpler group structure” and potential change in Suncorp’s appetite for greater group-wide reinsurance arrangements through quota share agreements, the Jarden analysts said. The financial conglomerate was created through the merger in 1996 of Queensland state-owned entities QIDC and insurer Suncorp with the listed Metway Bank. Even that was controversial because the deal torpedoed an attempt that year by St George Bank to take over Metway Bank in a $790 million deal. Suncorp has pledged to focus on improving its insurance arm after agreeing to sell its bank – a division in the gunsight of investors since the financial conglomerate’s birth in 1996 – to ANZ Banking Group. “It will … allow us to really focus in on our insurance business and the challenges and opportunities that are there in insurance at the moment around climate change, frequency and severity of weather, making sure that we get all those people back into their homes,” Suncorp chief executive Steve Johnston said on Monday of the bank sale.

Australia and New Zealand Banking Group Ltd (ASX:ANZ) and Suncorp Group Ltd (ASX:SUN) are in the news on the ASX 200 on Monday...

Going the other way, the worst performer has been the Megaport Ltd (ASX: MP1) share price with a 3% decline on no news. The best performer on the ASX 200 on Monday has been the Suncorp share price with a 6% gain. This follows the launch of a $3.5 billion capital raising to fund the acquisition of the banking operations of Suncorp Group Ltd (ASX: SUN) for $4.9 billion.

ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47 billion in home loans and $45 billion in deposits.

"Our purpose of building futures and protecting what matters - the focus of our company for over 100 years - will remain at our core and enable our people to deliver on our vision to create the leading trans-Tasman insurance company," she 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." There would be no job losses or changes to the number of Suncorp Bank branches in Queensland for at least three years after the deal was completed, ANZ said. ANZ chief executive Shayne Elliott said the "massively transformational deal" would see ANZ boost its presence in Queensland to the levels it had in Victoria and NSW, adding about a million customers to its stable of six million. Trading in ANZ shares was halted as the deal was announced on Monday after the bank said it would need to raise about $3.5 billion to fund the buyout. ANZ has agreed to buy Suncorp's banking business for $4.9 billion in Australia's biggest banking deal in a decade, and one the big-four lender describes as a vote of confidence in Queensland.

The "cornerstone investment" for ANZ is also a show of confidence in Queensland's future.

The deal is expected to complete in the back half of 2023. ANZ will be keeping up Suncorp Bank’s branches in Queensland for a minimum of three years following the deal’s completion, with no net job losses expected during this period. “We know there will rightly be questions from government and regulators about the competition aspects of this transaction. A total of $15bn in new lending will be allocated to ANZ’s commitments to back renewable projects in Queensland as well as green Olympic Games infrastructure. “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,” he explained. A total of $10bn in new lending will also be allocated towards energy projects.