NEWS UPDATE: Suncorp reconsiders banking and wealth management sale

Suncorp is reconsidering the sale of its banking and wealth management operations despite the group having received “several approaches” by parties interested in an acquisition.

The Commonwealth Bank of Australia (CBA) was the only institution to publicly share its interest in the operations for sale. CBA admitted last week that it had conducted “high level, exploratory discussions” with Suncorp.

But Suncorp today said it was “assessing the implications” for the potential sale of its banking and wealth management operations “in light of the significant events in world financial markets over the last week and the Federal Government’s constructive initiatives for the financial sector announced yesterday”.

“What fundamentally has changed is both the developments in overseas markets and here domestically with the Government’s announcement yesterday, so we’re taking the time to consider the implications of those developments,” a Suncorp spokesperson said.

But Suncorp will continue to consider offers made, the spokesperson said.

“We will consider any offer that may be made for our banking and wealth management assets in terms of whether or not they add shareholder value.”

The group’s ratings have been placed on ‘CreditWatch’ by Standard & Poor’s (S&P) amid uncertainty over the outcome of the sale. S&P said that on a normalised basis, the group’s banking and wealth management operations account for more than 40 per cent of its earnings.

Suncorp said it expects to hold discussions with “various parties” and will provide an update on the matter in due course.

“We expect to have talks with various parties over the next little while and should they resolve in anything, we’ll let the market know.”