Two of Australia's largest mutual banks have signed a Memorandum of Understanding (MoU) to combine more than 530,000 customers
Bank Australia and P&N Group have announced they are exploring a merger that would create one of Australia's largest customer-owned banks, with combined assets exceeding $30 billion and a national footprint of over 530,000 customers.
The two banks signed a Memorandum of Understanding (MoU) on Thursday, signalling the beginning of formal due diligence. If their boards agree to proceed, members will vote on the proposed merger in the first half of 2027, subject to regulatory approvals.
The merged entity would bring together Bank Australia's strong east coast presence – which itself expanded following its merger with Qudos Bank in July 2025 – with P&N Group's footprint in Western Australia and regional New South Wales through its P&N Bank and BCU Bank brands.
Leadership and structure
Under the proposed terms, P&N Group's Andrew Hadley would serve as managing director and chief executive of the merged entity, while Bank Australia's Damien Walsh would explore other career options following a successful completion.
Bank Australia Chair Jennifer Dalitz would take the inaugural chair role, with P&N Group chair Gary Humphreys serving as deputy chair.
All non-executive employees have been offered roles in the merged organisation, with the registered head office to be based in Melbourne and state offices maintained in Perth, Sydney, and Brisbane.
"This potential merger creates a unique opportunity to build Australia's leading customer-owned bank with the scale to invest in better services, technology and security," said Dalitz, "while growing our ability to drive positive social and environmental impact on behalf of our customers."
Humphreys echoed the sentiment, describing Bank Australia as "a financially resilient organisation with an established brand, clear strategic direction, and a well-established track record of delivering positive outcomes for customers and communities”.
What it would mean for customers
Both banks have committed to retaining all existing branches across Victoria, Western Australia, New South Wales, the ACT, and Queensland, with the merged entity to review branch needs over time. All current brand names would be retained on day one, with a transition to the Bank Australia brand planned as soon as practical.
The merged bank would remain 100% customer-owned, operating Australian-based call centres on both coasts to extend customer support across time zones – a logistical advantage that neither institution currently holds independently.
