Beyond Bank Australia and Police & Nurses are heading towards a merger by next year, with their combined assets to be worth almost $20 billion.
In a statement released today, Beyond Bank and Police & Nurses Limited announced they have signed a memorandum of understanding and would shortly start a detailed due diligence process to assess a potential merger.
Police & Nurses operates P&N Bank, which is based in Western Australia, and BCU Bank which has a presence in South Australia, WA, NSW and Victoria.
The combined entity would have 450,000 members and total assets close to $20 billion.
A new merged entity would create one of the biggest customer owned-banks in the country, according to the announcement.
“Following this, if both Boards agree to proceed, members will be asked to vote on the proposed merger in 2025 once all the appropriate regulatory reviews and approvals are complete,” the announcement reads.
Police & Nurses Limited chair Gary Humphreys said the banks had a close alignment of culture and values.
“The opportunity to bring two financially strong and growing customer-owned banks together to create one of Australia’s leading member and community-focused entities is an exciting one for our employees and our members,” he said.
“Banking has changed significantly in the past decade.
“The industry is highly competitive, and given the critical investments required in digital banking, cyber security, technology, and regulation, to name just a few, achieving scale through mergers like this can help ensure that we remain competitive and sustainable.
“By combining our size and people capabilities to become a stronger organisation for all our members, our merged entity will be in a better position to continue to invest in delivering the highest value and service to our members of today and the future.”
Beyond Bank Australia chair Sam Andersen said both banks had a solid foundation for a proposed merger.
“Both banks have long and proud histories through their credit union origins, which are at the heart of our modern customer-owned banks,” she said.
Mr Humphreys will be appointed as the inaugural chair of the proposed merged entity, the announcement reads.
Beyond Bank Australia chief executive Jake Bromwich will be appointed the inaugural chief executive, after the merger.
P&N Bank merged with BCU in 2019.
