Bank Australia and Qudos Bank Announce Merger to Create Australia’s Largest Customer-Owned Bank

Bank Australia and Qudos Bank, two customer-owned banks in Australia, have announced their intention to merge, creating one of the largest customer-owned banks in the country. The boards of both banks identified strong cultural alignment and a shared commitment to customer ownership as driving factors behind the merger.

The merger would result in a bank supporting 300,000 customers and boasting total assets exceeding $17 billion. With nearly 900 employees, the new entity would have the scale and resources to invest in enhanced products, services, and digital banking technology, ultimately benefiting the customers.

Bank Australia’s historic strength in Victoria and Qudos Bank’s strong presence in New South Wales present new growth opportunities for the merged entity to extend the benefits of customer-owned banking to more Australians.

Both banks share commitments to achieve net zero carbon emissions, and they believe that a successful merger will allow them to continue driving positive impact for people and the planet.

Bank Australia’s Chair, Steve Ferguson, expressed excitement about the merger as an opportunity to build on their cooperative principles and commitments to people and the planet. Qudos Bank’s Chair, Jennifer Dalitz, highlighted the shared focus on values-led, customer first banking and the potential to deliver even greater experiences for their customers.

A memorandum of understanding has been signed by both banks, initiating the due diligence process to assess the benefits of the potential merger. If both boards agree to proceed, members will have the opportunity to vote on the proposed merger in late 2024 or early 2025, following regulatory reviews and approvals.

Members of both banks will be kept informed of the progress and provided with further information to make an informed decision if the merger moves forward.