Newcastle Permanent and Greater Bank merge to become Hunter powerhouse
The merged entity will be called Newcastle Greater Mutual Group, or NGM for short, and overtakes Great Southern Bank to become one of Australia's largest customer-owned banks.
APRA data suggests the two Hunter-based banks will have combined residents' assets worth around $24 billion, while Brisbane-based Great Southern Bank has $21 billion.
It's been a period of solidification for the customer-owned sector, with Heritage Bank and People's Choice Credit Union also merging on Wednesday.
Not to be outdone, this merger would usurp NGM to become Australia's largest mutual, with more than $26 billion in residents' assets.
However, the two Hunter-based entities will retain and operate their retail brands, according to Group CEO Bernadette Inglis.
“This is a call we arrived at after very careful consideration, deciding that both brands’ history and performance scorecard meant they were each too strong an asset to part with," Ms Inglis said.
“The future is bright for customer-owned banking and given our financial strength, we are well-placed to lead the way in taking our way of banking to more Australians."
The brand now has 1,600 employees and more than 600,000 customers.
Despite the mergers, the two new institutions pale in comparison to Australia's largest banks; CBA has more than $1 trillion in residents' assets, for example.
According to the Customer-Owned Banking Association (COBA), the mutual banking sector has more than $150 billion in assets and five million customers across 58 institutions.
Top 10 Customer-Owned Banks
Institution
Assets (billion)
Great Southern Bank (formerly CUA)
$21.024
Newcastle Permanent
$14.589
Heritage Bank
$13.964
People's Choice
$12.659
Bank Australia
$11.812
Teachers Mutual
$10.905
Beyond Bank
$10.519
Greater Bank
$9.924
P&N Bank
$9.321
IMB
$8.912
Source: Australian Prudential Regulation Authority, January 2023 ADI Statistics.
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