ANZ has agreed to purchase insurer Suncorp’s banking arm as part of broader plans to grow its mortgage book.
Australia’s ANZ has agreed to buy Suncorp Group’s banking arm for A$4.9 billion ($3.3 billion), according to a statement, subject to regulatory approval. ANZ will fund the purchase partly by raising A$3.5 billion via new stock issuance. As part of the deal, ANZ will keep Suncorp’s Queensland headcount and branding for at least a few years, amongst other commitments like financing infrastructure for the 2032 Olympic Games in Brisbane.
«The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland,» said ANZ chief executive Shayne Elliott. «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.»
According to public data, the deal will boost ANZ’s mortgage book by A$47 billion to A$307 billion, overtaking NAB as the third largest bank by mortgage assets.
