Suncorp's Bank Sale Approval

Suncorp Group Limited (ASX: $SUN) has welcomed the approval from the Federal Treasurer for the proposed purchase of Suncorp Bank by ANZ Banking Group under the Financial Sector (Shareholdings) Act (FSSA). The completion date is targeted for 31 July 2024.

Executive Commentary

The Suncorp Group Board remains committed to returning to shareholders the majority of net proceeds following completion of the sale. Timing of the planned capital return to shareholders is dependent on finalisation of the completion accounts, receipt of a ruling from the Australian Tax Office, and approval from the Australian Prudential Regulation Authority. Suncorp Group CEO Steve Johnston emphasized the importance of this decision as a step towards Suncorp Group becoming a dedicated Trans-Tasman insurer, proudly headquartered in Queensland. He also highlighted the focus on meeting the evolving needs of insurance customers and addressing complex challenges such as climate change and affordability.

Summary of Approval and Future Plans

The approval of the proposed purchase of Suncorp Bank by ANZ Banking Group marks a significant step in Suncorp's strategic transition to becoming a dedicated Trans-Tasman insurer. The completion date targeted for 31 July 2024 indicates the progress towards this transition. Suncorp Group Chairman Christine McLoughlin expressed gratitude towards shareholders and employees for their patience during the approval processes. The company aims to return the majority of net proceeds to shareholders following the sale, with the expected capital return in the first quarter of the 2025 calendar year. CEO Steve Johnston highlighted the focus on addressing the evolving needs of insurance customers and complex challenges such as climate change and affordability. The decision also aligns with the delivery of the jobs and investment package agreed with the Queensland government, showcasing Suncorp's commitment to the region and broader areas in Australia and New Zealand. The company's strategic direction post-sale emphasizes a dedicated focus on insurance and addressing critical challenges, positioning Suncorp for future growth and resilience.