OPINION: ANZ boss Shayne Elliott says he’s “not going to be distracted” by the Suncorp acquisition at a time when rival bankers are gearing up for the refinancing wars
It’s a curious divergence of paths. The heavyweights at Commonwealth Bank, Westpac and National Australia Bank are rolling up their sleeves ahead of what promises to be one of the most vicious home loan turf wars ever seen.
But, they add, the brutal reality is that integrating two banks is always difficult, expensive and time-consuming. And given the sizeable execution risks involved, it’s far from assured that ANZ’s absorption of Suncorp will proceed smoothly.
ANZ’s strategy in acquiring Suncorp’s banking operations on a price/earnings multiple of 13.8 times appears to rest on the premise that Queensland home loan borrowers will remain loyal to the local lender. The smart retail bankers already know this. They’re already working out sophisticated pricing strategies on new variable rate loans with a view to enticing refinancing customers away from rivals.But they know that they’ll have to keep close watch on their home loan portfolio, to stop their own customers defecting to other lenders when their fixed rate loans expire.
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