Suncorp CEO John Mulcahy has forecast more consolidation in Australia’s financial services sector as the nation’s big banks prepare to release their results.

However, he told the ABC’s Inside Business program he is surprised there hasn’t been any additional interest in acquiring Suncorp, given the rumours that a big banking rival was considering a bid.

Mr Mulcahy expects more consolidation in the banking sector – which he says is a good thing because “well-managed scale adds value”. Yet he believes the prospect of, say, putting Suncorp together with St George is a long way off.

Mr Mulcahy insists the provision in the merger implementation agreement that any bidder moving on Suncorp must also continue the merger with Promina is not a “poisoned pill”. He says the proposed $7.9 billion purchase of Promina is not intended to protect Suncorp from takeover; rather, it’s a normal contractual requirement for such an agreement.