Macquarie Capital in Suncorp’s advice camp

Queensland lender and insurer Suncorp is said to be bringing Macquarie Capital into its corner after the financial group was understood to have run a process to consider whether to form strong ties with another investment banking adviser.

It comes after Steve Johnston was recently appointed as Suncorp chief executive to replace departing boss Michael Cameron, who was understood to have a close relationship with UBS.

It is understood Suncorp ran a select process about two or three weeks ago, where two or three firms were asked to pitch, so it could consider whether to form strong ties with another investment banking adviser other than UBS, which it has worked with in the past.

Suncorp is apparently impressed with the credentials of Marianne Birch, who runs Macquarie Capital’s Financial Institutions Group.

The timing is interesting given that it also coincides with the departure of UBS Australia chief executive Matthew Grounds.

Also said to be strongly linked with Suncorp under Mr Johnston’s watch is Lazard Australia, of which Suncorp chairman Lindsay Tanner is a special adviser.

The supposed changing of the guard among the investment banking teams may be a precursor to plenty of upcoming deal making activity as a low interest rate and tougher regulatory environment forces change.

It could also see Lazard make a big impression on the financial services stage after dominating of late in infrastructure, resources and industrials.

There are suggestions in the market that Suncorp could tie up with the Royal Automobile Club of Queensland, which has banking and insurance operations.

Other possibilities are acquisitions of rivals such as Bendigo Bank, AMP Bank or Bank of Queensland, or a demerger.

As reported earlier by this column, Suncorp apparently explored a tie-up with rival Bendigo and Adelaide Bank in 2018, with UBS understood to be working on the plan at that time.