Suncorp confirms position
(26 November 2009 – Australia) The new Suncorp Metway CEO has made the group’s position clear over the sale of its banking arm and promises to slim down Suncorp.
Patrick Snowball, chief executive officer, Suncorp Metway, has said that a sale of the banking arm, which came under enormous pressure during the global financial crisis, is officially off the agenda.
However, the bank will move quickly to overhaul the financial services group and reduce its complexity in a bid to win investors.
Mr Snowball, who has been in the CEO position for four months now, has been going over every area of the business with a fine tooth comb to increase earnings and restore the group’s creditability.
In the bank’s first update to investors since Mr Snowball’s arrival, Mr Snowball said that the underlying businesses were fundamentally sound.
Mr Snowball added that he believes the bank has everything it needs to get the company back on a very positive trajectory.
The main areas for the group’s attention will be the general insurance division; where currently brands like AAMI and GIO operate as stand alone businesses.
Suncorp will also be split into five business units that will share back-office functions.
Earlier in the year the bank split its banking into core and non-core assets.
The goal of the move was to separate the ‘low risk’ personal, housing and small business lending books from the ‘higher risk’ areas of the bank containing big commercial property and corporate exposures.
Mr Snowball said that the non-core bank, housing A$16.6 billion in assets, will continue to be wound down and some parts of the lending book sold.
The lower risk banking, including the retail branch network, will remain, Mr Snowball added.
However, the bank will move quickly to overhaul the financial services group and reduce its complexity in a bid to win investors.
Mr Snowball, who has been in the CEO position for four months now, has been going over every area of the business with a fine tooth comb to increase earnings and restore the group’s creditability.
In the bank’s first update to investors since Mr Snowball’s arrival, Mr Snowball said that the underlying businesses were fundamentally sound.
Mr Snowball added that he believes the bank has everything it needs to get the company back on a very positive trajectory.
The main areas for the group’s attention will be the general insurance division; where currently brands like AAMI and GIO operate as stand alone businesses.
Suncorp will also be split into five business units that will share back-office functions.
Earlier in the year the bank split its banking into core and non-core assets.
The goal of the move was to separate the ‘low risk’ personal, housing and small business lending books from the ‘higher risk’ areas of the bank containing big commercial property and corporate exposures.
Mr Snowball said that the non-core bank, housing A$16.6 billion in assets, will continue to be wound down and some parts of the lending book sold.
The lower risk banking, including the retail branch network, will remain, Mr Snowball added.
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