Bank Australia and Qudos Bank are now official.
Members of Bank Australia and Qudos Bank have approved the proposed merger between the two customer-owned banks this week, paving the way for the creation of a larger financial institution. The merger is set to go into effect starting July 1 of this year.
"This is a pivotal moment for our bank and sets us up well for our future," said Steve Ferguson, chair of Bank Australia.
Damien Walsh, Bank Australia’s managing director, added: “We are thrilled about the value the merger will create for customers as we embark on a new phase of growth, ensuring our people and purpose are at the heart of everything we do."
Walsh will lead the newly-merged organization, while Brendan Wright, outgoing chief executive officer of Qudos Bank, will depart on June 30. In addition, Jennifer Dalitz, the current Chair at Qudos Bank, will assume the role of chair for the merged bank, while Ferguson will take on the elevated role of deputy chair. The board will consist of equal representation from both banks.
The duo said the combined entity will boast more than $17.5 billion in assets, serving approximately 300,000 customers across Australia. It will also have a workforce of 900 employees and operate an expanded network of 15 branches across New South Wales, Victoria, Queensland and the Australian Capital Territory. The head office operations will be split between Sydney and Melbourne.
Plans for the merger were first revealed in February 2024. The banks needed at least 75% of member votes to authorize the union. Both banks confirmed they had exceeded the requirements, with Bank Australia reporting a 91% approval rate and Qudos Bank having 78.43% of its members voting in favor. The banks still need final regulatory approval from the Australian Prudential Regulation Authority (APRA).
Both banks have emphasized that the merger aims to provide greater value to their members through enhanced services, potentially lower fees and a broader range of products. The merger will also allow for increased investment in digital technology and cybersecurity.
