After simplifying the portfolio, getting the Institutional bank into shape and addressing the regulatory changes in New Zealand, our focus over the past few years has been on our Australian franchise - particularly how we can accelerate growth in Retail and Commercial.
And while the trading result demonstrated the turn-around in Australian home loans along with the strong performance in Commercial, today’s announcement is also core to those plans.
Suncorp Bank is a unique opportunity for ANZ. It is a terrific franchise, a natural fit with ANZ and incredible opportunity to make a meaningful step forward building enduring scale.
Importantly, we know this business well – Suncorp Bank is one of ANZ largest customers as we are a key provider of banking services to them. We have admired the transformation Suncorp Group CEO Steve Johnston and Suncorp Banking and Wealth CEO Clive van Horen have driven at the bank over recent years.
Their purpose, risk settings, culture and customer demographics are closely aligned to ours. They have a great team and we want to invest in the business to benefit of all stakeholders.
We are acquiring 1.2 million customers – a 20 per cent uplift for ourselves here in Australia - a great management team, a culturally-aligned business and a platform for growth.
In the core Retail business, this provides a 17 per cent step up in Australian home loans, a 22 per cent step up in Australian retail customer deposits and a 20 per cent increase in small to medium enterprise lending. The equivalent of many years of organic system growth.
More importantly for us here at ANZ, this is an opportunity to increase our commitment to Queensland. We like the fundamentals of Queensland – it’s a young growing population, a diversified economy with big ambitions around sustainability.