Highlights
- Enhanced customer benefits: Greater scale will enhance the customer experience and create the first customer owned bank with truly national reach.
- Technology investment: Enhanced digital experience with critical ongoing focus on cyber security and fraud prevention to keep your money safe.
- People opportunities: A leading employer of choice, expanded career pathways, and all employees below Executive level offered roles.
- Greater impact: Increased scale to deliver stronger social, environmental and community outcomes.
- Coast-to-coast branch network: Maintaining presence in Western Australia and regional New South Wales, while adding national coverage, creating one of the most compelling customer owned banking propositions in Australia.
- Member vote: Subject to a Board recommendation and regulatory approvals, members to vote on the merger in the first half of 2027.
We would like to share some important news with our valued customers about a significant opportunity to create a strong, competitive and truly national customer-owned bank.
P&N Bank (Police and Nurses Ltd) and Bank Australia have signed a Memorandum of Understanding (MoU) to explore a possible merger.
Nothing changes for our customers right now. You can continue to use your accounts, branches and contact centres as usual. The merger would only proceed if approved by regulators and supported by our members via a vote.
Why are we exploring a merger?
Banking technology and consumer expectations continue to change rapidly. The industry is highly competitive, with banks needing to make critical ongoing investments in digital banking, cyber security, technology, and regulation. To deliver better products, more choice and stronger services, we need greater size and scale. This will not only futureproof our bank, but it will also allow us to reinvest profits back into a better customer value proposition.
By combining our strengths with Bank Australia in coverage, expertise, cyber security and technology, we would not only become stronger and more resilient, but we would be better positioned to deliver the enhanced products, services and security that our customers expect.
This MoU is the first step in a process that may, subject to a Board recommendation to merge and regulatory approvals, ultimately be determined by a member vote on a merger sometime in 2027.
Who is Bank Australia?
- Bank Australia is a customer owned bank serving over 338,000 customers across multiple states, offering everyday banking with a strong focus on fairness, transparency and long term value.
- What distinguishes it is its purpose led approach -using finance as a force for good -combining competitive banking products with a proven commitment to social and environmental impact through ethical lending and initiatives like its Impact Fund.
- They have branches in Victoria, NSW, ACT and Queensland.
What does this mean for you?
For now, nothing changes. You’ll continue to access your accounts, branches and contact centres as you always have.
If the merger proceeds, customers would remain at the centre of everything we do. Benefits are expected to include:
- A stronger, 100% customer-owned bank with national reach
- Expanded products and services, including digital and impact offerings
- Increased investment in technology and cyber security to keep your money safe
- Broader access through an expanded branch footprint
- Ethical customer-owned banking that makes a real, proven difference to communities and the environment.
Our commitments
We assure you that our Board will only recommend a merger if the due diligence (review) process demonstrates a merger would be in the best interests of our customers. If the merger proceeds, we are committed to:
- Remaining 100% customer-owned and Australian-based
- Maintaining existing brands initially (P&N Bank and BCU Bank), with the intent to transition to a single Bank Australia brand as soon as practical (potentially a year or two following the merger date)
- Key roles of the merged entity
- Jennifer Dalitz (Bank Australia Chair) will be the Chair.
- Gary Humphreys (PNL Chair) will be the Deputy Chair.
- Andrew Hadley (PNL MD/CEO) will be appointed Chief Executive Officer and Managing Director.
- Damien Walsh (Bank Australia MD/CEO) will explore other career options when the merger takes effect.
- All employees, other than executive management, will be offered roles in the merged entity.
- The registered Head office will be in Melbourne, and state office operations will be maintained across Perth, Sydney and Brisbane.
- The important regional presence will also be maintained, including Coffs Harbour.
- All existing branches will be retained at the time of the merger. As part of our usual operations, any future changes will be subject to review to meet customer needs and strategic priorities.
- Customers will retain their existing products and terms at the time of the merger.
- Over time, with a focus on delivering optimal outcomes for customers, the merged entity will align and simplify products, services, terms and conditions, interest rates and fees.
- Following a due diligence process, if both Boards recommend proceeding with a merger, members will have the opportunity to vote in the first half of 2027.
What do you need to do?
You do not need to do anything now – we’re here to serve you as usual.
Over the coming months, our team and the Bank Australia team will each conduct a thorough due diligence (review) process. If both Boards agree to recommend a merger, a member vote on the proposed merger will take place in early 2027 following a detailed customer education campaign throughout 2026 and the required regulatory approvals along the way.
Frequently asked questions
No, the merged entity will continue to be 100% customer owned.
The merged corporate entity will be Bank Australia Ltd.
Bank Australia’s long history (more than 60 years) reflects the coming together of many credit unions over time, building a strong legacy of serving customers and communities across Australia.
Current brands will be maintained initially, with an intent to transition to a single Bank Australia brand as soon as practical.
The Bank Australia brand is a well established, purpose led national brand that reflects the same customer focus, ethics and values that our customers trust today. This merger would create an opportunity to bring together the best of P&N Bank and BCU Bank within a stronger national organisation -preserving what matters most to customers, while enhancing scale, capability and consistency.
By coming together under one brand, we can operate more efficiently and invest more in better products, services and experiences – strengthening our ability to support customers now and into the future.
The proposed merger is about building a bigger, stronger purpose-driven bank. The aim is to create opportunities to improve customer experience and increase our impact, not about cost cutting.
All non-executive employees will be offered a role in the merged entity.
Customers will retain their existing products and terms at the time of the merger.
Over time, with a focus on delivering optimal outcomes for customers, the merged entity will align and simplify products, services, terms and conditions, fees and interest rates.
The merged Board will be led by Jennifer Dalitz (Bank Australia) as inaugural Chair and Gary Humphreys (P&N Group) as inaugural Deputy Chair.
The Board of the merged entity will comprise 10 non-executive directors:
- 6 from Bank Australia
- 4 from Police & Nurses Ltd (PNL)
Andrew Hadley (PNL) will be appointed Managing Director and Chief Executive Officer. Damien Walsh (Bank Australia) will explore other career options when the merger takes effect.
Executives will continue in their current roles to ensure both banks continue to deliver on their strategic priorities.
If the merger proceeds, Executive roles will be subject to a selection process following agreement of the organisational structure of the merged entity.
If both Boards decide to recommend a merger following the due diligence process, members of both banks will be asked to vote on the merger proposal.
While it is too early to identify a date when members may be asked to vote, if the merger does proceed, a vote will be held in the first half of 2027. We will keep employees and members informed of progress.
Members will be provided with a detailed information pack ahead of being asked to vote.
It is too early to put a date on that. Should members vote in favour of the merger, we expect day 1 of the merged bank would be in the second half of 2027.
The proposed merger will be assessed by the Australian Prudential Regulation Authority (APRA) and require their approval, the Australian Treasurer’s and other regulators for it to proceed.