The deal, pending regulatory approval, is expected to complete within a year
Bank Australia has announced an agreement to acquire the banking business of Australian Unity, adding approximately 25,000 customers along with $1.4 billion in loans and credit, and $1.6 billion in deposits.
The acquisition is part of Bank Australia’s growth strategy to expand its customer-owned, values-based banking model. The move aligns closely with Bank Australia’s planned merger with Qudos Bank, which, if approved, would create one of the largest customer-owned banks in Australia, serving over 300,000 customers with more than $20 billion in assets.
Bank Australia managing director Damien Walsh (pictured above) said the acquisition, which is subject to regulatory approval and is expected to take around 12 months to complete, underscores the bank’s commitment to mutual ownership and community-focused banking.
“As a strong, resilient customer-owned bank, we are proud to support the ongoing needs of Australian Unity banking customers," he said. “We know the current market environment is becoming increasingly difficult for smaller credit unions and mutual banks to operate.
“We look forward to welcoming Australian Unity Bank customers to our growing member base and continuing to provide them with the benefits of a customer-owned bank. We will work closely with Australian Unity to support their customers and employees through this period of change.”
Walsh added that the Qudos Bank merger proposal is still in progress, with approval from the Australian Prudential Regulation Authority (APRA) pending before a planned member vote in 2025.
Australian Unity’s group managing director, Rohan Mead, said the transfer would benefit both customers and the broader mutual banking sector.
“This transfer will provide Australian Unity Bank customers with the benefits of Bank Australia’s larger customer service footprint, greater digital capability and increased scale, providing long-term sustainability,” Mead said.
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