Bank Australia and Qudos Bank to proceed with proposed merger following initial due diligence

The two customer owned banks announced the proposed merger in February 2024 with the Boards of both banks citing the strong values alignment, commitment to customer ownership and opportunity to scale their impact as the basis for exploring the merger.

Bringing Bank Australia and Qudos Bank together would create one of Australia’s largest customer owned banks supporting 300,000 customers with total assets exceeding $17 billion and served by almost 900 employees.

Qudos Bank Chair Jennifer Dalitz said “We’re pleased to be proceeding with the proposed merger of two of Australia’s leading customer owned banks, Bank Australia and Qudos Bank following a successful due diligence phase. We see the proposed merger as an exciting opportunity that would create one of Australia’s largest customer owned banks, and enable greater investment in even better products, services, digital banking technology for our customers and creating a positive impact for communities and the environment.”

Bank Australia Chair Steve Ferguson said “The proposed merger between Bank Australia and Qudos Bank would provide an opportunity to accelerate the growth of two financially strong customer owned banks. Qudos Bank shares our strong focus on supporting customers and their communities to thrive, so their vision of a sustainable future aligns closely with ours. The growth from a merger would allow us to deliver even greater experiences for our customers, and increase the reach of our purpose driven banking to more Australians.’’

During the next phase of due diligence, both banks will focus on identifying the benefits and risks of the proposed merger, along with developing the plans, strategies and structures needed to successfully merge.

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

Key aspects of the proposed merger agreement

• The proposed Board composition with Jennifer Dalitz (Qudos Bank) as inaugural Chair and Steve Ferguson (Bank Australia) as inaugural Deputy Chair of the merged entity. The merged Board will include equal representation from both banks and will ensure retention of the required skills and experience.
• Damien Walsh (Bank Australia) to become Chief Executive Officer and Managing Director, while Brendan Wright (Qudos Bank) will have the opportunity to continue with the merged entity in an executive capacity.
• All non-executive employees will be offered or have the opportunity to apply for roles within the merged entity including redeployment opportunities where appropriate.
• Head office operations will be split between Collingwood (VIC) and Mascot (NSW), while all current branches will be retained and reviewed by the merged entity to support customer service requirements.
• Retention of both brands in the period following the merger, with an intention for future review in due course.