Following a period of due diligence, Bank Australia and Qudos Bank have agreed to continue to explore a proposed merger and seek regulatory approval to merge, before asking members to vote in 2025.
The two customer owned banks announced the proposed merger in February 2024 with the boards of both banks citing” the strong values alignment, commitment to customer ownership and opportunity to scale their impact as the basis for exploring the merger.”
Bringing Bank Australia and Qudos Bank together would create one of Australia’s largest customer owned banks supporting 300,000 customers, with total assets exceeding $17 billion and served by almost 900 employees.
Jennifer Dalitz, chair of Qudos said in a statement to members yesterday: “We’re pleased to be proceeding with the proposed merger following a successful due diligence phase.
“We see the proposed merger as an exciting opportunity that would create one of Australia’s largest customer owned banks, and enable greater investment in even better products, services, digital banking technology for our members and creating a positive impact for communities and the environment.”
Bank Australia Chair Steve Ferguson said: “The proposed merger between Bank Australia and Qudos Bank would provide an opportunity to accelerate the growth of two financially strong customer owned banks.
“The growth from a merger would allow us to deliver even greater experiences for our members, and increase the reach of our purpose driven banking to more Australians.’’
Following any Jennifer Dalitz ( now chair of Qudos Bank) will serve as inaugural chair while Steve Ferguson (now chair of Bank Australia) will be deputy chair of the merged entity.
The merged Board will include equal representation from both.
Damien Walsh (Bank Australia) will be CEO while Brendan Wright (now CEO of Qudos Bank) “will have the opportunity to continue with the merged entity in an executive capacity.”
All non-executive employees will be offered or have the opportunity to apply for roles within the merged entity including redeployment opportunities where appropriate.
Head office operations will be split between Collingwood in Melbourne and Mascot in Sydney.
All current branches “will be retained and reviewed by the merged entity to support customer service requirements.”
Both brands will be maintained in the period following the merger, “with an intention for future review in due course.”