CEO and Managing Director of Suncorp Group Ltd (ASX: SUN), Michael Cameron, will step down from his role after almost four years as CEO. Where will the Suncorp share price go from here?
About Suncorp
Suncorp Group is a $17 billion insurance and banking company. It has its own brand of products but also operates under names like AAMI, GIO, Apia and Shannons. Further, it owns a regional banking division called Suncorp Bank.
CEO Steps Down, CFO Steps In
Mr Cameron has been the CEO of Suncorp for almost four years and served as a board member for seven years.
Chairman Christine McLoughlin thanked Mr Cameron for his contributions to the company, particularly in the digital space, but said that it was time for a change.
“On behalf of the Board I would like to thank Michael for his leadership in accelerating our digital capability and in driving a customer-first culture,” she said.
Mr Cameron said he believes Suncorp is positioned well to succeed in the future with its new digital capabilities.
“Suncorp now has the digital foundations in place to enable it to be nimble and to seize opportunities,” he said.
“I believe the business has great potential and will continue to enjoy success.”
Mr Cameron will remain at Suncorp in an advisory role until 9th August 2019, after the release of full-year results.
In his place, CFO Steve Johnston will step into the role of Acting CEO.
Ms McLoughlin said Mr Johnson has held several leadership positions in his 13 years at Suncorp and is the right man for the job.
“Steve is highly regarded by his peers and has successfully served in various leadership roles in his 13 years at Suncorp,” she said.
What Next for Suncorp?
There have been rumours lately surrounding a possible acquisition of Suncorp’s banking division by HSBC Holdings Plc (LON: HSBA). However, no move has been made by either party.
Suncorp’s latest quarterly report showed that growth had slowed, so the company’s board will undoubtedly be looking for new ways to boost growth figures. Small business and agribusiness lending are two potential areas they have identified.
In my opinion, Australian banks still face a whole host of challenges that discourage me from investing in Suncorp shares right now. I’d rather invest in one of the three businesses mentioned in the free report below.
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Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.
