Great Southern Bank and P&N Bank Set to Become Australia’s Largest Mutual Bank
In a significant move towards consolidation in the Australian banking sector, Great Southern Bank and P&N Bank have agreed to a merger, which will form the country’s largest mutual bank. The union between these two banking institutions is a strategic decision aimed at increasing their scale and enhancing their service offerings. This merger will bring together assets worth approximately $30 billion and a combined membership of 620,000.
A Strategic Merger for Enhanced Market Presence
Great Southern Bank, formerly known as Credit Union Australia, and P&N Bank, have been on the lookout for potential merger partners with considerable scale for a while. An agreement between them seemed probable years ago, but it’s only now that they’ve reached terms. This merger is expected to trigger a wave of consolidation among other large mutual banks in Australia, as they seek to achieve greater scale.
The two banks have signed a Memorandum of Understanding to explore the merger, which is subject to a vote by members of each bank. If approved, the merger is set to proceed by early 2027.
Forming a Nationwide Banking Network
Great Southern Bank has a strong presence in Queensland, New South Wales, and Victoria, while P&N Bank holds a market-leading position in Western Australia. P&N’s BCU Bank brand serves members in Northern NSW and South-East Queensland. The merger will form a powerful metropolitan and regional network, providing the first truly nationwide presence in the sector, according to the joint statement released by the banks.
All three brands will continue to operate post-merger, with dual headquarters in Perth and Brisbane, and regional offices in Coffs Harbour, Sydney, and Melbourne. Importantly, all non-executive employees will be offered roles in the merged entity, minimising redundancies.
Investing in the Future of Banking
Speaking about the merger, P&N Group’s Chair, Gary Humphreys, expressed that partnering with Great Southern Bank was a deliberate choice, given its financial strength, solid reputation, shared values, and commitment to face-to-face customer service. Andrew Hadley, CEO of P&N, emphasised that the merger would position the combined entity better to face the highly competitive banking industry and continue investing in areas like digital banking, cybersecurity, technology, and regulation, ultimately benefiting their customers.
The proposed board of the merged entity will have equal representation from both banks. Great Southern Bank’s Chair, Deborah O’Toole, will serve as inaugural Chair, with P&N Group’s current Chair, Gary Humphreys, serving as Deputy Chair. Paul Lewis of Great Southern Bank will be the CEO, with a Deputy CEO to be appointed in Perth.
This merger symbolises a significant step towards consolidation in the Australian banking industry, creating a mutual bank of an unprecedented scale. It is expected to set a precedent for other mutual banks in the country, prompting them to consider similar mergers for increased scale and enhanced services.
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