In response to market downturn and declining net profits, Suncorp has merged its retail and banking business operations.
"Merging our banking operations makes sense in the current economic environment and market cycle. This change has been on the radar for some time and the timing is now right," Suncorp chief executive John Mulcahy said.
According to a Suncorp spokesperson there will be some impact on jobs, however, Mulcahy refused to comment on numbers.
"It may affect some of the back-office staff," he said.
"But we will be looking, as we always do, to use the turnover figures and redeployment wherever we can, to minimise the head count impact."
The merger will be effective immediately and current retail bank group executive David Foster will lead the combined banking business.
This announcement comes after yesterday's report of a decline in net profit after tax to $556 million for the full-year to June 30, 2008, a significant reduction from a profit of $1.06 billion in 2006/2007.
"While I understand shareholders will be disappointed by the headline result, management responded well to the external challenges we faced," Suncorp chairman John Story said.
Mulcahy said that Suncorp was also looking to reduce discretionary spending and reduce duplication to cut costs.
