Australia and New Zealand Banking Group (ANZ) has signed an agreement to buy the banking arm of insurance company Suncorp Group.

ANZ has agreed to pay A$4.9bn ($3.33bn) for the deal, which is anticipated to support the growth of its retail and commercial businesses, while expanding its geographic reach.

ANZ CEO Shayne Elliott said: “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.

“This will result in a stronger more balanced bank for customers and shareholders.”

As part of the agreement, the acquired bank will continue to be led by current CEO Clive van Horen.

The deal will have no impact on Suncorp Bank’s team with no planned changes to employment conditions.

The acquisition will not result in any net redundancies or branch closures in Queensland for Suncorp Bank for at least three years after completion of the deal.

Initially, Suncorp Bank will continue to operate under its existing Authorised Deposit-taking Institution licence.

Suncorp Bank brings home loan books worth A$47bn, with A$45bn as deposits and A$11bn as commercial loans.

ANZ will fund the deal by issuing new equity worth around A$3.5bn and existing capital.

Suncorp Group CEO Steve Johnston said: “As a dedicated insurance business we will be singularly focused on meeting the needs of our customers and communities at a time when the value of insurance has never been greater.

“By combining with a larger banking group, Suncorp Bank will be well positioned for the future. Customers will see benefits including access to a wider range of products and services, and career opportunities will be enhanced for our people.”

In a separate development, ANZ announced that it has ended the talks with KKR for the potential acquisition of software firm MYOB, reported Bloomberg.