Deutsche buying Suncorp loans
Deutsche Bank's Australian branch is the likely buyer of part of the non-core loan book of Suncorp Metway, the Herald Sun reported.Deutsche is conducting due diligence on property-related loans and $1.3 billion in lease finance assets in the non-core portfolio, the newspaper reported.Head of Suncorp Bank, David Foster, told an investor briefing on Tuesday that it was "capitalising on opportunities for repricing [of loans] and asset disposal where it makes sense to do so."The credit quality of Suncorp's non-core loans has worsened over the last quarter. Suncorp said this week that its level of impaired loans increased 19 per cent to $1.75 billion over the three months to September 2009. Loans 90 days or more past due increased four per cent to $449 million.Almost all this increase was in the category of loans now classed as "non-core", and which includes some corporate loans as well as those advanced to larger property developers.At September 2009, Suncorp said it had $37 billion in core assets and $17 billion in non-core assets, with the run-down in the non-core book proving to be a touch slower than foreshadowed earlier in the year.