Bank Australia-Qudos Bank members approve merger

As such, both banks exceeded the required 75 per cent ‘yes’ vote.

The banks will now seek final regulatory approval from APRA (having already had preliminary approval) as they prepare to bring the two organisations together as a merged entity on 1 July 2025 (with the total transfer of the business of Qudos Mutual Limited to Bank Australia Limited).

Once merged, the merged bank will have a combined total of over $17.5 billion in assets, serve 300,000 customers across Australia, and have 900 employees (all Australia-based). It will operate an expanded 15-branch network across NSW, Victoria, Queensland, and the ACT.

Both brands will continue to operate in market from 1 July, but benefits to members – such as cheaper fees and charges – will reportedly kick in immediately following the merger.

Speaking following the outcome of the vote, Bank Australia’s managing director Damien Walsh said: “Throughout the merger process we’ve been committed to ensuring customers understand the benefits of the merged bank, so we are incredibly pleased to have had such a strong member vote in favour of the merger.

“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.

“With the successful member vote we can continue to move ahead with seeking final regulatory approval and planning for day 1 of the merged bank. The focus of the merger is to provide customers with more benefits through a better, stronger and more resilient customer-owned bank and we’d like to thank everyone for taking the time to vote.”

Walsh, the current CEO and managing director of Bank Australia, will lead the new organisation and head office operations will be split across current locations in Sydney and Melbourne. Jennifer Dalitz, the current chair at Qudos Bank, would become the new chair of the merged bank, with Steve Ferguson (from Bank Australia) becoming inaugural deputy chair.

The merged board will include equal representation from both banks.

Brendan Wright to depart

However, Qudos Bank CEO Brendan Wright will leave the merged bank on 30 June 2025.

Both banks thanked Wright for his “outstanding leadership and values-led approach in driving the merger strategy”.

Speaking of the merger outcome, Wright said: “As a customer-owned bank listening to our members is core to what we do. During the merger process we held many member information sessions and answered lots of questions about what a merger would mean. We are delighted that Qudos Bank members so strongly support the merger, and we thank them for their time to engage and have their say by voting.

“The merger with Bank Australia is a significant milestone in Qudos Bank’s history and one we are excited about. We look forward to delivering greater value to members via lower fees and charges on a range of products, an expanded branch network and access to new products. Member benefits that would not have been possible without the merger.”

The outgoing CEO told The Adviser that brokers (who write about 78 per cent of Qudos’s home loan flows) will continue to be able to access the new Qudos lending operation system – which has helped the bank achieve about 8.5 per cent annualised mortgage growth – and may also benefit from a broader range of products in the future.

Wright told The Adviser: “There’ll be a product review done over time to deliver even more products to the broker channel, because they’ve been great supporters of both banks.”

Looking to his future, he said: “I’m so proud of what we have achieved at Qudos Bank by coming together with Bank Australia. When I joined as CEO, the primary objective of the board was a strategy to grow Qudos Bank and find the right merger partner.

“We’ve delivered that. And what we’ve delivered is something that’s in the best interest of members, and so Qudos Bank and Bank Australia can continue to deliver to the members and our people in the long run.”

He said that he hoped to remain working with the broker channel in his next role: “I don’t have the answers to what that is yet, but I’m expecting to turn up somewhere in the not-too-distant future. I’ve got lots of experience in banking and in broker so it makes sense that I may turn up in something in either realm or very close to it.

“What I’ve been able to do in two CEO stints now [Qudos Bank and FAST] is transform organisations, set them up to continue and endure over the long run, and most importantly, help the people get fantastic career opportunities as well.

“So, let’s see where it plays out but keen to be ‘back in the game’ very soon.”

Mutual merger mania

The Bank Australia-Qudos Bank merger is one of a number of mutual bank mergers in the past year, with two having completed in the past year and another three in progress.

These include:

• G&C Mutual Bank and Unity Bank
• Teachers Mutual Bank Limited and Australian Mutual Bank Limited
• Summerland Bank and regional NSW lender Regional Australia Bank

It comes following warnings from APRA that mergers could be a possible solution to access advanced technologies and specialised expertise that would “otherwise be prohibitively expensive or too complex to develop internally”.

The prudential regulator has also recently said that some mutuals lack the skills to navigate a modern banking environment and need to continue to reduce strategic risks amid rising competition, the cost of new tech, changing customer behaviours, and the “war for talent”.

Speaking earlier this week, APRA’s executive board member for banking Therese McCarthy Hockey said that APRA had observed that the boards of some mutuals “lack the necessary skills to guide their banks in a modern banking environment, in particular, technology skills”.

To combat this, the banking specialist said mutuals needed to focus on upskilling directors and bringing in “fresh talent”, potentially looking “beyond [the] bank’s traditional geographic or industry-based pool”.

Hockey also said that mutual banks may also lose out due to the lengthy tenure of board members.

“Long tenure begins to raise questions about the ongoing ability of directors to exercise impartial judgement, challenge management effectively and be open to new ideas,” she said.

More to come.

[Related: Qudos Bank CEO hails ‘best of both’ approach as Bank Australia merger nears]