Perth’s P&N Bank and the Brisbane-based Great Southern Bank are in early-stage merger talks that could create a $30 billion customer-owned banking heavyweight.
Perth’s P&N Bank and the Brisbane-based Great Southern Bank are in early-stage merger talks that could create a $30 billion customer-owned banking heavyweight.
The two banks have signed a memorandum of understanding to explore a merger that could bring together head offices in Perth and Brisbane, along with a dozen branches in Western Australia and about 50 locations on the east coast, to serve a combined 620,000 customers.
The deal would unite $30 billion worth of assets and form one of the nation’s largest customer-owned banks, the pair declared upon shaking hands to commence due diligence for the potential tie-up on Monday.
A merged bank would be run by Great Southern Bank’s chief executive Paul Lewis, who would be supported by a yet to be picked deputy based in Perth.
P&N's long-serving managing director Andrew Hadley would step down completion of the proposed deal in favor of other opportunities outside of the merged group.
Great Southern Bank’s chair Deborah O’Toole would serve as the inaugural chair and P&N Group’s current chair Gary Humphreys would be deputy, should the deal progress.
It comes after last year P&N Bank walked from merger talks with Beyond Bank after completing its due diligence and deciding the proposed deal was not in the best interest of its members.
Perth-founded P&N Bank – short for Police & Nurses Limited – has 13 branches across the metropolitan area and also operates BCU Bank in northern New South Wales and southeast Queensland. It has about 600 employees on its books.
Brisbane-based Great Southern Bank has a presence in Perth and long list of about 50 branches across the east coast of Australia, employing about 1,000 workers.
The pair’s existing branch presence and home soil call centres on both the west and coast coasts would be maintained.
P&N Group chair Mr Humphreys said Great Southern Bank was a deliberate choice for the potential merger opportunity.
“We believe that our customers will benefit from being a part of one of Australia’s leading customer and community-focused banks,” he said.
“Great Southern Bank is a financially strong Australian customer-owned bank with a solid reputation and shared values.”
P&N managing director Mr Hadley said a merged entity would be better positioned to make investments in digital banking and cyber security.
“Our industry is highly competitive, and given the critical investments required in digital banking, cyber security, technology, and regulation, a merger of this scale would benefit our customers and help ensure that we remain competitive and sustainable,” he said.
“By combining our financial resources, strengths and people capabilities, the merged entity would be in a better position to continue to invest in delivering the most value and service to our customers of today and the future.”
Great Southern Bank chair Ms O’Toole echoed that a merged bank would be able to invest more in digital banking and technology, as well as improve pricing and expand services.
Should the merger talks progress, the boards agree to proceed, and all regulatory approvals are notched, bank members would be able to vote on the deal in late 2026.
