Suncorp-Metway Ltd’s new chief executive, Patrick Snowball, says the financial group’s banking arm is core to the business, telling potential predators to “get your tanks off our lawn”.

Mr Snowball also pledged to restore market and shareholder confidence in the group and outline three key objectives to turn around Suncorp, which suffered a 40.3 per cent fall in profit in 2008/09.

The future of the banking arm, which has been valued at around around $4 billion and includes retail, commercial and agribusiness, has been a source of speculation for some months.

ANZ Banking Group Ltd chief executive Mike Smith in September said that while Suncorp’s bank was “not on the radar” of any possible purchase he would not rule out it.

The UK-born Mr Snowball said on Wednesday the bank was core to the group and Suncorp would not run the business with a view to offloading it in the future, rebuffing the sale talk.

“We plan to run this business and all our businesses hard, and we stand ready to be judged depending on how we perform,” Mr Snowball said during his first address to shareholders since becoming chief executive in September.

“We must just get on with the job.

“My polite message to those who seek to target us is: get your tanks off our lawn!”

Mr Snowball, who has a military and financial background, said rumours about the bank business were a clumsy attempt to during the global financial crisis to create a buyers’ market for “what people presumed or hoped to be distressed assets”.

He also said there was no doubt Australia’s regional banking sector needed to fundamentally change and that Suncorp would have a defined strategy to meet that challenge and create an upside for all stakeholders.

Mr Snowball also outlined other plans to improve confidence in the group, reduce system complexity and streamline its business culture, but did not offer any earnings guidance for the new financial year.

He said he was aiming to restore the confidence of Suncorp’s staff, shareholders and the market in its ability to achieve its objectives.

“This will only come from consistently delivering the performance we promise and forecast,” Mr Snowball said.

Suncorp was hit hard by the global financial crisis, which caused funding costs to rise and forced it to scale back its lending business, as a number of large weather events also hurt its insurance business.

The company earlier in 2009 had to raise money from shareholders, and the former chief executive John Mulcahy stepped down in February as profit was slumping for a second consecutive year.

Suncorp also froze executive pay and shrunk its bonus pool.

Mr Snowball said the culture of the group had to change to better coordinate its many brands and businesses and to encourage performance and success.

He favoured a “one company, many brands” approach.

“However, I believe the creation of a truly unified culture remains a significant challenge and will be a leading priority.”

Mr Snowball also flagged changes to the group’s too many systems to reduce complexity and costs.

“So simplifying our systems and providing one view of our customers and our finances will become a priority for the group in the early stages,” he said.

Suncorp in August reported a net profit of $348 million for 2008/09, down 40.3 per cent on the previous year, as provisions for bad and doubtful debts increased.

Suncorp shares closed down 37 cents, or four per cent, at $8.88.

AAP