Chief executive of Suncorp Metway Ltd John Mulcahy has agreed to step down from his post after six years in the role.

Mr Mulcahy will stay on in the role until a new chief executive is in place, Suncorp said in a statement.

He will also remain a director of the company until he ceases to be CEO.

News of Mr Mulcahy’s departure came as Suncorp launched a $900 million capital raising designed to lift its tier 1 capital ratio to 10.9 per cent.

“The capital raising we have announced today will further strengthen the Group and enable it to take advantage of the changes underway in the financial service sector,” Mr Mulcahy said in a statement.

“With the capital raising under way, it is an appropriate time for the Board to advise the market of our intention to commence the transition of leadership to focus on the next phase of the Group’s development.”

Mr Mulcahy steered Suncorp through its integration with GIO and Promina.

Chairman John Story thanked Mr Mulcahy for his contribution to the company.

AAP