‘Business as usual’ as Suncorp sells bank for $4.9bn

One of Australia’s ‘big four’ banks has confirmed its intentions to buy out Suncorp’s banking operations for $4.9 billion. This is what the pending sale means for the Brisbane-based bank’s staff and customers.

ANZ has confirmed plans to buy out Suncorp’s banking operations in a potential $4.9 billion deal.

The proposed transaction will face regulatory scrutiny as the big four lender promises no changes to branch numbers and staffing levels - for at least three years.

Will there be any job losses?

There will be no net job losses for at least three years. ANZ, which has never broken into the Queensland market, sees this as an opportunity to expand in the state which has a great growth future in terms of the Olympics and other investment opportunities.

What about branch closures?

The number of branches and ATMs will remain the same for the next three years at least. Customers will notice little difference in terms of services and in fact they will have the benefit of increased products provided by ANZ. There will be a branch sharing arrangement for up to seven years.

What are the advantages for Queensland customers of Suncorp from the deal?

By combining with a larger banking group, Suncorp Bank will be well positioned for the future. Customers will see benefits including access to a wider range of products and services, and career opportunities will be enhanced for our people. ANZ is committed to growing its presence in Queensland.

Steve Johnston John Feder/The Australian.

Will the Suncorp name stay the same?

Yes, ANZ will keep the name. ANZ are paying $1.3bn in goodwill alone which means they see the value of the brand which has a strong presence in Queensland.

Suncorp Bank will continue to be led by chief Clive van Horen, who will report to ANZ chief executive Shayne Elliot

What is Suncorp doing with the money?

Most of it will be returned to shareholders through a special dividend of around $3.25 per share. That will be good for the Queensland economy as we have a lot of shareholders here.

What does this mean for the rest of the Suncorp business?

It will be business as usual and will allow ASX-listed Suncorp Group to concentrate on the insurance business with all the associated challenges of climate change. We will remain headquartered in Brisbane with all the same people.

Why was the bank sold?

The jury was always out on having a bank and insurance company together. If investors want to invest in a bank they will and the same for insurance. This deal will allow the bank to grow and also provide similar opportunities for our insurance operations.

In considering the merits of the transaction, it was important to us that any potential acquirer demonstrated a commitment to Queensland and has long-term plans to grow at what you would expect me to parochially call the most important state in the Commonwealth.