Australia’s Suncorp is ostensibly looking to dispose of its banking operations and refocus on its insurance arm.
Suncorp, which opened its first bank branch in 1902, may sell its banking unit or spin it off into a separate listing on Australia’s stock exchange, and has been working with investment bank Barrenjoey Capital Partners on options, the «Australian Financial Review» reported.
Suncorp, in a statement filed Monday to ASX, referred to «media speculation» and said: «As previously advised, Suncorp, from time to time, reviews its strategic alternatives in relation to all of its businesses and is currently doing so in respect of its banking operations.»
The Australian financial services company has around 96 billion Australian dollars in assets, according to its website. For the six months ended 31 December, Suncorp reported its net profit fell around 21 percent from the year-ago period to 388 million dollars after facing 19 separate weather events, with a higher-than-expected natural hazard claims cost of 695 million dollars. But Suncorp noted the bank’s profit for the six-month period rose to 200 million dollars, accounting for just over half of cash earnings, and «demonstrating the benefit of having diversified sources of profit.»
