Dollar Steadies Ahead of ECB and BoE Decisions as Markets Turn Risk-Off 
Trump Endorses Japan’s Sanae Takaichi Ahead of Crucial Election Amid Market and China Tensions 
Nvidia Nears $20 Billion OpenAI Investment as AI Funding Race Intensifies 
Nintendo Shares Slide After Earnings Miss Raises Switch 2 Margin Concerns 
Gold and Silver Prices Rebound After Volatile Week Triggered by Fed Nomination 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
Uber Ordered to Pay $8.5 Million in Bellwether Sexual Assault Lawsuit 
Fed Governor Lisa Cook Warns Inflation Risks Remain as Rates Stay Steady 
Australia’s December Trade Surplus Expands but Falls Short of Expectations 
OpenAI Expands Enterprise AI Strategy With Major Hiring Push Ahead of New Business Offering 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Amazon Stock Rebounds After Earnings as $200B Capex Plan Sparks AI Spending Debate 
Bank of Japan Signals Readiness for Near-Term Rate Hike as Inflation Nears Target 
Rio Tinto Shares Hit Record High After Ending Glencore Merger Talks 
Sony Q3 Profit Jumps on Gaming and Image Sensors, Full-Year Outlook Raised 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
ANZ Bank or the Australia and New Zealand Banking Group announced that it be acquiring the banking unit of Suncorp Group. This is a strategic move so it can boost its home loan books.
The ANZ Bank is buying the said asset for AUD$4.9 billion or around $3.33 billion. Once the acquisition is completed, the company’s aim is to fortify its customer growth and home loan book.
As per Reuters, ANZ is one of the top lenders in Australia, however, its loan application processing times was said to have affected it negatively as it slowed down the business. Now, by taking control of Suncorp Bank’s home loan portfolio, the bank is hoping this will improve the process as well as strengthen its mortgage books.
It was reported that as of the last quarter of fiscal 2021, ANZ Bank loaned a total of AUD$633.76 billion while Suncorp Bank had AUD$57.56 billion gross loans, wherein 80% of the total consist of home loans.
The Melbourne headquartered financial services company will be raising around AUD$3.5 billion to have funds for the acquisition deal. The agreement is expected to boost ANZ Bank’s earnings while it will also give Suncorp a net proceeds of AUD$4.1 billion. Suncorp is planning to give back most of the money to its shareholders.
"With much of the work to simplify and strengthen the bank completed, and our digital transformation well-progressed, we are now in a position to invest in and reshape our Australian business," Shayne Elliot, ANZ Bank’s chief executive officer, said in a statement. “The acquisition of Suncorp Bank will be a cornerstone investment for ANZ and a vote of confidence in the future of Queensland.”
Suncorp Bank’s chairman, Christine McLoughlin, also added, "We believe the agreed price fairly values the bank and reflects the hard work of our people and progress made on delivering our strategic objectives."
Finally, The Sydney Morning Herald reported that under the deal, Suncorp’s banking unit will continue to be operated by Suncorp for five years. The bank’s current CEO, Clive van Horen, will also continue to manage it but he will be reporting to ANZ Bank’s chief Shayne Elliott.
