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P&N Group – which operates P&N Bank in Western Australia and BCU Bank in northern NSW and South-East Queensland – has signed a memorandum of understanding (MOU) with Bank Australia to explore a merger that would create one of Australia’s largest customer-owned banks, with more than $30 billion in assets.
Should the boards agree to proceed, members would vote on the proposal in the first half of 2027, following completion of regulatory reviews and approvals.
The merged entity would remain 100 per cent customer-owned, according to the lenders, with almost 1,500 staff and more than 530,000 customers across Australia.
P&N Group’s Andrew Hadley would become managing director and CEO of the combined entity, while Bank Australia’s Damien Walsh will “explore other career options”.
At board level, Bank Australia chair Jennifer Dalitz is slated to serve as inaugural chair, with P&N Group’s Gary Humphreys as deputy chair.
The board would also comprise six directors from Bank Australia and four from P&N Group.
All existing branches across Victoria, Western Australia, NSW, the ACT, and Queensland would be retained and reviewed over time, with the group also citing its intention to maintain its regional footprint, including its presence in Coffs Harbour.
A successful merger would see the registered head office based in Melbourne, with state offices maintained across Perth, Sydney, and Brisbane.
Bank Australia chair Jennifer Dalitz said partnering with P&N Group supports the lender’s strategy and purpose to be a “financial force for mutual good”.
“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, while growing our ability to drive positive social and environmental impact on behalf of our customers,” she said.
Meanwhile, P&N Group chair Gary Humphreys also commented on shared alignment.
“This partnership brings together two strong, Australian customer-owned banks with aligned values and a shared commitment to putting customers first,” he said.
“We believe it creates a compelling opportunity for our customers to be part of a national organisation and one of Australia’s leading purpose-led banks.
“Bank Australia is 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.”
Size and scale
A successful merger would create a “national customer-owned bank” with a coast-to-coast presence across Australia, according to the lenders.
A key focus of the merger would be technology transformation, including increased investment in digital capability, cyber security, and fraud and scam prevention.
The merged entity would also position itself as an “employer of choice”, with employees below executive level offered roles and expanded career development opportunities.
It would also aim to deliver greater community impact, supported by increased scale and investment across its operations.
Mutual movement
There has been a flurry of activity in the mutual banking space in recent times, with both lenders actively exploring merger opportunities.
Just last year, Bank Australia commenced its merger with Qudos Bank and also successfully acquired Australian Unity Bank.
P&N Group also explored a tie-up with Great Southern Bank, first announced in September 2025. However, talks were ultimately unsuccessful.
In that instance, both boards concluded that progressing the merger would “not be in the best interests of customers”, as reported by Broker Daily sister brand The Adviser.
[Related: Bank Australia-Qudos Bank commence merger]
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