No more major mergers: Norris

by BN26 Mar 2010

Having benefited greatly from a merger during the financial crisis, Commonwealth Bank CEO Ralph Norris has declared that the era of major acquisitions for the Big Four is now over.

“There's no doubt that it would now be very difficult for one of the majors to take over a second-tier bank,” Norris said. “I see that as being unlikely.”

He added that consolidation could still occur between second-tier banks, possibly creating a fifth and sixth pillar.

CBA picked up BankWest in 2008 for around 70% of book value. ACCC chairman Graeme Samuel now regrets approving the deal.

Since the mergers of 2008, CBA and Westpac’s share of the home loan market has expanded to eclipse that of ANZ and NAB. However, NAB CEO Cameron Clyne said that new data would show renewed growth in his bank’s mortgage business, The Australian reported today.