Bank Australia and P&N Group take next step in proposed merger

Following successful completion of the initial due diligence phase, Bank Australia and P&N Group have agreed to continue to explore a proposed merger and seek regulatory approval to merge before asking members to vote in 2027.  

The two customer-owned banks announced the proposed merger in May 2026 with the Boards of both banks citing the opportunity to create one of Australia’s largest purpose-led customer-owned banks, building on shared values and commitment to customer ownership, and sector leading commitments to sustainability and community impact.  

Bringing Bank Australia and P&N Group together would create an entity supporting more than 530,000 customers with total assets exceeding $30 billion and served by almost 1500 employees nationwide. Bank Australia’s strong east coast presence combined with P&N Group’s strength in Western Australia in particular, opens opportunities to create a truly nationwide customer-owned bank.

Bank Australia Chair Jennifer Dalitz said “We are excited to move to the next phase of our proposed merger with P&N Group. Throughout due diligence we continued to be pleased with the strong alignment between our two banks in our values, our commitment to purpose and positive impact, and our complementary business models. We look forward to taking the next steps together towards building Australia’s leading customer-owned bank.”

P&N Group Chair Gary Humphreys said "The conclusion of the initial due diligence phase marks an important milestone in our discussions with Bank Australia and enables both organisations to move to the next stage of the proposed merger process, including seeking the necessary regulatory approvals.

"The work undertaken to date has reinforced the potential strategic alignment between our organisations and the opportunities that could be created by bringing together two purpose-led customer-owned banks with a shared commitment to customers, communities and mutual values.

"If approved by regulators and ultimately supported by members, the proposed merger would create one of Australia's leading customer-owned banks, strengthening our ability to invest in products, services and community impact, while remaining focused on delivering long-term value for customers.

"We recognise there is still important work ahead and we remain committed to keeping our customers, employees and other stakeholders informed as the proposal progresses."

Both banks will now focus on seeking regulatory approval for the proposed merger along with developing the strategies, plans and structures to successfully complete the merger.

Members of both banks will be kept informed of progress and will be provided with additional detailed information to support them to make an informed decision ahead of the vote.

Key aspects of the proposed merger agreement include:

• Jennifer Dalitz (Bank Australia) as inaugural Chair and Gary Humphreys (P&N Group) as inaugural Deputy Chair of the merged entity. The merged Board will include 6 Bank Australia and 4 P&N Group directors ensuring retention of required skills and experience.
• Andrew Hadley (P&N Group) to become Chief Executive Officer and Managing Director, while Damien Walsh (Bank Australia) will explore other career opportunities following a successful merger.
• All non-executive employees will be offered a role within the merged entity.
• The registered head office will be in Melbourne, and state office operations will be maintained across Perth, Sydney and Brisbane.
• The important regional presence of both banks will also be maintained, in in northern NSW, central Victoria and the Latrobe Valley
• No branches will be closed as a direct result of the merger.  
• All current brands will be retained on Day 1, with an intent to adopt only the Bank Australia brand as soon as practical.