Newcastle Permanent and Greater Bank have signed a Memorandum of Understanding to merge and form what they are describing as a “regional powerhouse”.
The two banks will remain as standalone brands and no redundancies will result from the merger, which will see their joint assets push $20 billion and unite over 600,000 customers.
The banks are already ranked as two of the most popular in Australia, as per the Forbes’ World’s Best Banks list, and this merger will see them consolidate their status in the Hunter Valley region.
“This proposed merger of two highly successful Hunter-based organisations will create a large, forward-thinking financial institution that sustains the core principles of customer-owned banking,” said Jeff Eather, Chair of Newcastle Permanent.
“It will also position the Hunter region as a financial powerhouse in Australia. Our vision is to be a vibrant employer of choice that delivers fulfilling and rewarding careers for more than 1,600 people.”
His Greater Bank counterpart, Scott Morgan said: “Success in the banking sector is dependent on the ability to rapidly adapt, meet evolving customer expectations and new regulatory demands.”
“Smaller organisations can be at a disadvantage in keeping pace with required investment in frequent and complex technology advancements; a decade ago there were circa 200 mutuals across Australia, today the number is fewer than 70. We are both committed to our communities and driving better value for our customers.”
Newcastle Permanent CEO Bernadette Inglis added: “A merger provides an opportunity for transformational change to future-proof both organisations – more so than can be achieved individually.”
“It enables the combined organisation to carve out a presence as a beacon for the mutual sector, and be a significant competitor in retail banking. Newcastle Permanent and Greater Bank have attractive and complementary characteristics which we believe make this merger highly compelling, and provide significant value to customers, through improved technology and organisational capability.”
