Great Southern Bank Projects Growth with SME Business Products
Great Southern Bank (GSB) has demonstrated confidence in its rollout of Small and Medium Enterprises (SME) business products. GSB’s Treasurer, Shane Marchant, revealed in a recent debt investor call that the bank expects its Business+ to contribute 10% of the bank’s earnings within the next five years. This ambitious projection signifies GSB’s commitment to supporting SMEs and expanding its services in this area.
“We want to be a credible alternative and true challenger,” Marchant stated, citing Nationwide and Rabobank as the benchmark for Great Southern Bank’s business strategy. The bank’s aspiration to compete with globally recognized financial institutions indicates its ambition to broaden its reach and influence in the banking sector.
GSB and P&N Bank Consider Merger
In a strategic move to enhance its position, Great Southern Bank and P&N Bank have agreed to explore a merger. This union, upon completion, will create the largest mutual bank in Australia. The merger is expected to take place in February 2027, marking a significant milestone in Australian banking history.
The SME Offering Strategy
The SME offering from GSB is a deposit-led strategy, according to Marchant. Although, the monthly APRA statistics or the bank’s 2025 annual report doesn’t provide substantial evidence of this momentum yet. Nevertheless, the bank is optimistic about the potential success of this strategy.
“We’ll add scale to the small business rollout,” Marchant added, indicating plans to expand the reach of their SME services. GSB aims to grow its balance sheet by $80 to $90 million each month, signalling a robust expansion plan.
Changes in Treasury Strategy
In a shift of strategy, the bank plans to reduce its capital as it transitions investments away from ADIs to government securities with a zero-risk weighting. This move indicates GSB’s strategic decision-making aimed at maximizing return while minimizing risk.
GSB’s Financial Standing
Great Southern Bank holds an impressive BBB+ rating by S&P Global and a Baa1 rating by Moody’s Ratings. These ratings reflect the bank’s strong financial health and its ability to meet its financial commitments.
In the financial year ending in June 2025, GSB reported a net profit of $43.2 million, a notable increase from $37.3 million in FY2024. The bank has total assets of $21.1 billion, further highlighting its strong financial standing.
Post-Merger Projections
Post-merger with P&N, the combined entity will have approximately $30 billion in assets and serve 620,000 members. This merger will significantly enlarge the bank’s customer base and asset portfolio, strengthening its position in the financial sector.
This forward-looking approach from Great Southern Bank, including the focus on SME business products and the potential merger, demonstrates its commitment to growth and service expansion. This not only assures current clients of its capabilities but also attracts potential customers seeking reliable and growth-oriented banking services.
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