FX.co ★ Suncorp Group H1 Profit Rises; Plans To Close Suncorp Bank Deal In Mid-2024

Suncorp Group Ltd., an Australian corporation reported an increase in its first-half profit for owners of the company, rising to A$582 million, a significant growth from the previous year's restated A$552 million. There was also an increase in earnings per share, growing to 45.09 cents from the prior 42.23 cents.

The profit after tax rose by 5.4% largely due to a substantial improvement in investment income. Before income tax, the profit was A$870 million, an increase from the previous year's A$802 million. Meanwhile, insurance revenue saw an increase from A$5.94 billion to A$6.70 billion.

In addition, the Board announced an interim ordinary dividend of 34 cents per share, fully franked. Suncorp, which has arranged to sell Suncorp Bank to Australia and New Zealand Banking Group Ltd (ANZGY, ANZ.AX), now anticipates the sale to be finalised around mid-2024.

Back in July 2022, these companies had agreed on this deal, although it was initially denied authorization by the Australian Competition and Consumer Commission (ACCC) in August 2023. However, as of February 20, 2024, the Tribunal granted authorization for the planned sale of Suncorp Bank to ANZ.

The sale is still contingent on the amendment of the State Financial Institutions and Metway Merger Act 1996 (Qld) and approval from the Federal Treasurer under the Financial Sector (Shareholdings) Act 1998. The estimated cash consideration for the sale is A$4.90 billion, subject to standard completion adjustments.