Hunter based Greater Building Society has today announced plans to merge with Armidale based ABS Building Society.
Both Boards have agreed to a proposal that will see the transfer of business from ABS to the Greater. The merger requires the approval of ABS members as well as Australian Prudential Regulation Authority and Australian Securities and Investments Commission.
Greater chairman John Kilpatrick said the merger was an effective and logical way for the Greater to expand its services in the New England and Northwest regions.
Greater CEO Don Magin said ABS’ 3,500 customers would benefit from lower home loan interest rates, competitive deposit accounts, more direct fee free ATM access, lower fees and additional products such as credit cards.
“The Greater has a proud history of service in the region and has been actively considering opening a branch in Armidale,” Mr Magin said.
“This fits with our plan to take on the major banks and offer greater competition in the financial services marketplace for more Australians,” he said.
“We are expanding our area of operations to build a stronger Greater for the benefit of our current and future members.”
ABS chairman, Peter Hanlan said the Board will recommend the merger as being in the best interests of its 3,500 members because it will provide them with more a broader, more competitive range of financial services. Mr Hanlan said it will also provide the Armidale and Guyra communities with more competition in the local financial sector.
He said that the merger was a “good fit” because both organisations had similar values, a commitment to being a mutual, a proud history of serving regional communities, and a focus on providing low fees and superior customer service.
A vote is expected to be held by before the end of the year. Subject to member approval, the transfer of operations is expected to commence on 1 January 2011.
ABS is a mutual building society with a branch in Armidale and a service centre in Guyra. It has 10 staff and almost $75 million in assets.
Greater Building Society is celebrating 30 years of service in the region, opening its Gunnedah branch in June 1980. It has a branch in Tamworth and provides mobile lending services to surrounding areas. This year it became a major supporter of the Northern Inland Academy of Sport.
One of Australia’s Top 200 private companies (BRW 2010), the Greater has 66 branches across regional NSW and the Gold Coast, 700 staff and assets worth more than $4billion. It has an independently determined customer satisfaction rating of 95 per cent. The Greater has been named best building society in both the 2010 Mozo People’s Choice Awards and 2010 AFR Smart Investor Blue Ribbon Awards.
MEDIA ENQUIRIES: ABS: Roger Cracknell on 0439 725 522 Greater: Craig Eardley on 0437 477 493.
