People's Choice buys TIO Bank

People's Choice Credit Union will acquire TIO Bank from the Northern Territory government from January.

The NT government sold the banking arm of Territory Insurance Office for A$48 million, local NT media reported.

The acquisition includes the former building society's loan portfolio, worth approximately $570 million,and deposits worth $124 million.

This will take People's Choice Credit Union's total assets under management and advice to more than $8.5 billion.

TIO's banking business reported a $2 million operating profit in 2014 and "experienced phenomenal growth", with 40 per cent growth in new home lending, its annual report said.

Around 8000 TIO Bank customers will transfer to People's Choice. People Choice's said it currently has 33,000 members in the Northern Territory and 345,000 Australia-wide.

Allianz will take ownership of TIO's general insurance arm.