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The two customer-owned lenders have announced they are looking at the possibility of merging.
Beyond Bank Australia and Police & Nurses Limited (operating as the P&N Group, which includes P&N Bank and bcu) have signed a memorandum of understanding (MoU) to explore a potential merger.
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The two customer-owned banks have initiated a due diligence process to assess how a merger could benefit their combined 450,000 members.
Should the merger proceed, the new entity would become one of Australia’s largest customer-owned banks, with an asset book of around $20 billion.
The proposed merger would unify Beyond Bank’s operations in South Australia, the ACT, Western Australia, NSW, and Victoria with P&N Bank’s presence in Western Australia and BCU Bank’s growth in Northern NSW and South-East Queensland, creating a significant metropolitan and regional footprint.
Key elements of the merger include maintaining the existing branch network and offering roles to all employees in the merged entity.
The board of the new organisation would feature equal representation from both banks, with Jake Bromwich (the newly appointed Beyond Bank CEO) taking up the position as the inaugural CEO and Gary Humphreys (P&NL) becoming the inaugural chair.
If due diligence is completed successfully and both boards agree to move forward, members will vote on the merger in 2025, subject to regulatory reviews and approvals.
Gary Humphreys, chair of P&N Limited, commented, “Our shared culture and values, along with a focus on member-first banking, make this merger a promising opportunity. Combining our financial strength and resources will help us invest in digital banking, cybersecurity, technology, and regulation, ensuring we remain competitive and sustainable.”
Beyond Bank Australia chair Sam Andersen agreed, emphasising the banks' shared history and commitment to community and sustainability.
Andersen said: “Our long histories and cooperative principles are central to our customer-owned ethos. This merger will strengthen our commitment to financial wellbeing and help us build a more sustainable bank.”
Recent trends show a surge in mutual bank mergers. Beyond Bank recently acquired First Choice Credit Union and P&N merged with Bananacoast Community Credit Union (bcu) in 2019.
Other notable mergers include Greater Bank and Newcastle Permanent, G&C Mutual Bank and Unity Bank, Heritage Bank and People’s Choice Credit Union (now People First Bank), and Teachers Mutual Bank Limited and Pulse Credit Union Limited.
Bank Australia and Qudos Bank also announced their intention to explore a merger earlier this year.
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