Suncorp-Metway’s (ASX:SUN) new CEO, Patrick Snowball, has dismissed speculation the company was considering divesting its banking arm.
“I have taken on the role of Chief Executive of the Suncorp group,” Snowball said at the group’s AGM yesterday. “That group includes a bank. That bank is core to the group.”
The speculation, he said, was partly the result of “clumsy attempts during the global financial crisis to create a buyers’ market for what people presumed or hoped to be distressed assets,” with Suncorp being a favoured target.
Snowball conceded that Australia’s regional banking sector needs to make fundamental changes if it is to survive, but said he felt Suncorp had a well-defined plan for making the required changes.