Suncorp shelves sale for now

In light of “changed” financial sector circumstances Suncorp has concluded discussions with prospective purchasers of its banking and wealth management assets for the immediate future.

Suncorp chairman John Story said that given international volatility and the government’s new banking guarantee initiatives “we have determined that this process was unlikely to result in offers reflecting the operational or strategic value of the Suncorp banking and wealth management businesses”.

The market would need time to take the government’s initiatives into account, as well as international initiatives, Mr Story said.

But while Suncorp has decided to continue to operate independently Mr Story did not rule out selling its banking and wealth management assets at a later date.

“The board is willing to re-engage with those parties who have, in the past, expressed strong strategic interest in these assets and is open to proposals that are realistic and offer fair value to our shareholders,” he said.