Energy mutuals agree to merge

Maritime, Mining & Power Credit Union will suck up one more small-scale mutual in the energy sector, with the board of Shell Employees Credit Union supporting a merger of the two.

It will be the third for MMPCU in less than a year, after Collie Miners and Newcom Collieries.

That lifts  MMPCU alongside Bank Australia and Community CPS - each with six mergers since 2008 - as the most active players in the consolidation of small mutuals.

With its Clyde, Sydney refinery closing, Shell Employees was a vulnerable ADI.

The stated rationale is the standard story of needing scale, mainly on the Shell side.

"The Australian financial services industry has become increasingly consolidated over the past decade, driven by intense market competition, continuing downward pressure on interest margins and an increase in costs," the SECU board explained in a letter to members on its website this week.

"As a relatively small institution, we have been particularly exposed to the additional cost pressures of the market and regulatory challenges, along with the need to invest into a new office relocation and the associated costs," the board said.

MMPCU has an asset base of A$820 million and 28 branches. Shell Employees Credit Union, by contrast, was an obvious merger candidate with only $52 million in assets,

MMPCU and SECU said they were "committed to ensuring that there will be no job losses with the merger and that new and exciting career opportunities will be available for staff."

One of the current SECU Directors will join the MMPCU Board.