Suncorp sells banking arm to focus on insurance

The banking business was sold for $3.33b.

The Suncorp Group is selling its banking operations in Australia and New Zealand for $3.33b (AU$4.9b) to Australia and New Zealand Banking Group Limited (ANZ), with the intent to focus on its insurance arm.

The banking arm will continue to operate under the Suncorp Bank brand pursuant to a licensing agreement between ANZ and the group for a period of five years post-completion.

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Suncorp Group CEO Steve Johnston said that its divestment of the banking business and re-shifting focus on insurance was not a decision taken lightly and was made through extensive analysis and consideration.

“As a dedicated insurance business we will be singularly focused on meeting the needs of our customers and communities at a time when the value of insurance has never been greater,” Johnston said.