BSB 806 015

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BSB 806 015

Stronger together - an important opportunity for P&N

Dear member,

You may be aware that since December 2018, P&N has been exploring a merger opportunity with bcu, to strengthen our organisation, enhance our member offerings and expand our presence.

Who is bcu?

bcu is a highly successful northern NSW based credit union, with 21 branches, a loyal member base of 57,000 people, 200 staff and $1.7 billion in assets.

Whilst half the size of P&N, bcu share the same member-owned model, member first ethos and community focus as P&N. Like us, they also have a clear appetite to grow so that they can improve the products and services they provide to their members.

Why should we merge?

Banking has changed dramatically in recent years with technological advances, increased regulation, and emergingcompetitors and business models. These changes bring with them increased customer expectations and investment spend, and we need to grow our organisation to ensure that we remain relevant and sustainable. Put simply, additional size and scale will place us in a much better position to compete.

Also, we know that retaining all the attributes that you value such as our local P&N brand, our WA presence, our branch network, our staff and our strong member focus is paramount.

What's important to you?

Therefore, we would like to reassure you that should this merger proceed:

  • P&N’s brand, and our commitment to our members and their communities will not change
  • P&N’s Head Office will remain in WA at our new Perth CBD premises
  • The Chair and the CEO of the merged entity will remain Perth based
  • There will be no branch closures as a result of the merger, and
  • There will be no forced redundancies.

Most importantly, we have concluded that the integration of both organisations will deliver tangible financial and non-financial benefits back to you, our members.

What's next?

We are pleased to advise that, following an extensive due diligence process (completed in conjunction with our external advisers), our Board has endorsed the merger to progress to the next phase, on the basis that: 

  • no material issues have been identified that would cause us not to proceed with the proposed merger with bcu; and
  • it is in the best interests of both P&N and our members.

P&N and bcu will now commence the application process to seek merger approval from the Australian Prudential Regulatory Authority (APRA) and other regulators; a process that is likely to take several months.

Subject to APRA’s endorsement, we are planning to release a member information booklet including further information about bcu and a full list of the member benefits you can expect, in advance of a member vote.

Subject to both P&N and bcu member support, we envisage that the merger would take place in late 2019, with integration activities occurring later in 2020.

What do you need to do now?

You don’t need to take any action at this stage. It is business as usual at P&N and our staff will continue to deliver the same excellent service that you deserve. 

This is a significant milestone for P&N’s future and I am confident and enthusiastic about the opportunities the merger will bring to P&N Bank, its members and our staff. 

We will continue to keep you advised of material developments and, should you have questions or feedback at any time, please call our Contact Centre on 13 25 77 or email us at [email protected].

Kind regards,

Andrew Hadley

Andrew Hadley
CEO

Frequently asked questions

  • Who is bcu?

    bcu is a highly successful northern NSW based credit union, with 21 branches, a loyal member base of 57,000 people, 200 staff and $1.7 billion in assets. 

    Whilst half the size of P&N Bank, bcu share the same member-owned model, member first ethos and community focus as P&N. Like us, they also have a clear appetite to grow so that they can improve the products and services they provide to their members.

    bcu has a strong and positive brand presence in their region and a different distribution footprint to P&N Bank. They operate and serve members in NSW and Queensland, while P&N operates in Western Australia.

  • Why do we need to merge?

    Banking has changed dramatically in recent years with technological advances, increased regulation, and emerging competitors and business models. These changes bring with them increased customer expectations and investment spend, and we need to grow our organisation to ensure that we remain relevant and sustainable. Put simply, additional size and scale will place us in a much better position to compete.

    Consolidation of the customer-owned banking industry will continue to occur with or without us, and in an increasingly digital world, state boundaries are less relevant than they used to be. 

    P&N Bank has been investigating options for potential partnerships for some time to strengthen our core business and expand our presence. 

    Our industry is facing many challenges, including rising costs, decreasing margins and an increase in required investments in technology and compliance. A partnership with bcu would pave the way for a stronger organisation for both sets of members. 

    If this merger is approved, we will retain all the attributes that our members love about P&N Bank - our brand, our people, our branch network and our new WA based Head Office in the heart of the Perth CBD will remain. Together we will be a stronger banking organisation on behalf of our current and future members.

    Both the P&N Bank and bcu Boards are supportive of this merger proceeding.

  • What's in it for members?

    Should the merger be approved, we have concluded that the integration of both organisations will deliver tangible financial and non-financial benefits back to our members.

  • Will the P&N Bank brand stay the same?

    Yes. Our commitment to WA and the brand attributes many of our members love will remain. There will be no change to the P&N Bank brand name nor customer-owned banking model.

    The Head Office of the combined entity will remain in Perth, at our brand-new Kings Square building in the Perth CBD. 

    P&N Bank branches and Contact Centre will remain as they currently are. The way that you bank with us will not change. Furthermore, the Chair and the CEO of the merged entity will remain Perth based.

  • Will P&N Bank still be customer owned?

    Yes, we are fully committed to our customer-owned model. It is one of P&N Bank's core differences that makes us a genuine alternative to the major banks.  

See all frequently asked questions regarding the bcu merger.

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