Skip to Main Content

Our Merger Implementation Agreement (MIA)

After announcing a Memorandum of Understanding in August 2021 to explore merging, both organisations conducted extensive due diligence and unanimously agreed the proposed merger is in the best interests of their respective member bases.

Chair of Greater Bank, Wayne Russell, and Chair of Newcastle Permanent, Jeff Eather, formalised the Boards’ endorsement by signing a Merger Implementation Agreement (MIA) in March 2022.

The merger proposal will require approval from Australian Prudential Regulation Authority (APRA) before being put to members of both organisation at meetings likely to take place later in 2022.

Our commitment

This is a significant undertaking for Greater Bank and Newcastle Permanent. In coming together, this is our commitment to our customers, communities and people.
  • We will remain 100% customer-owned;
  • Both iconic brands, Greater Bank and Newcastle Permanent will continue, meaning there’ll be no change to your bank accounts or banking details;
  • The current number of combined branches will be retained and there will be no forced employee redundancies as a result of the merger for at least two years;
  • We will continue to support our local communities by maintaining or growing our multi-million dollar investment; and
  • Our customer contact centres and headquarters will continue to be based in the Hunter, as they always have.

Additionally, should the merger proceed, Greater Bank customers will continue to experience the same outstanding products and services that they have long enjoyed.

They can do so via online banking and mobile app platforms, or over the counter at one of our branches located across NSW and South-East Queensland.

Eligibility to vote on the merger

Following regulator review, the merger proposal will be put to members of both organisations to vote on at meetings likely to take place later in 2022.

Voting eligibility is determined in accordance with our Constitution and is the same criteria used to determine voting eligibility at our AGM each year.

An eligible voter must be over 18 years of age and have held at least $500 (in aggregate) on deposit with Greater Bank continuously for a period of at least six months ending on the last 30 June before the general meeting at which you wish to vote.

If the general meeting at which the proposed Merger is to be voted on is held between 1 July 2022 and 30 June 2023, an eligible voter must have held at least $500 (in aggregate) on deposit with us continuously from 1 January 2022 to 30 June 2022.

You can read more about voting eligibility in our Constitution

Our recommendation to customers

Greater Bank and Newcastle Permanent have built reputations for delivering competitive banking for our local communities. Great value with a personal touch. This merger puts us in the best position to ensure we can continue to do that for generations to come.

The Boards of both organisations firmly believe this is a highly compelling opportunity to grow and compete, while preserving the values and approach that make us who we are. Members are encouraged to vote in favour of this merger when given the opportunity later this year. 

Answering your questions

 

Your banking

For now, this means no change at all for our customers.

Should the merger be completed, post-merger you’ll continue to experience the same outstanding products and services that they have long enjoyed with Greater Bank, which can be access via online banking and mobile app platforms, or over the counter at one of our branches located across NSW and South-East Queensland.

This is a strength-to-strength deal and a merger of equals. We are two of the financially strongest mutuals in Australia. As a merged entity we would have $19.8 billion in total assets and a customer base of approximately 600,000, making us one of Australia’s largest mutuals.

Both brands will continue to operate and provide the exceptional customer service that they do today. Each will continue to grow and support more customers.

The merger will support both brands to be highly competitive in the market. Customers will always have the right to select the product that best suits their needs.

Should the merger be completed, post-merger you will see no immediate change to your day-to-day banking. Greater Bank customers will continue to experience the same outstanding products and services that they have long enjoyed, which can be access via online banking and mobile app platforms, or over the counter at one of our branches located across NSW and South-East Queensland.

About the merger

For more than 75 years, Greater Bank and Newcastle Permanent have operated side-by-side and, while competing for customers, have always shared a common purpose of supporting the people and communities that support us.

In a world of big banks, we’ve always punched above our weight. We are both financially strong and through our fierce commitment to being customer-owned, have each built loyal customer bases that span generations.

Combining our resources and financial strengths provides an unparalleled opportunity to grow and innovate, to deliver even better value for our customers. This has been, and remains, the foundation for entering into such an arrangement.

Merging will also enable us to keep pace with increasing regulation and reporting, and the rapid advancements in banking technology, both of which require significant investment.

Combined, Greater Bank and Newcastle Permanent have $19.8 billion in total assets and a customer base of approximately 600,000. In merging, we will create one of Australia’s largest customer-owned financial institutions, and positioning us to be a real challenger and remain a significant competitor in the banking sector.

Consolidation within the Australian banking industry over the past decade has seen the number of mutuals almost halved. Today there are fewer than 70* , as other smaller financial institutions have united to remain competitive and sustainable.

Professional services consultancy KPMG suggests^ this trend is set to continue with a quarter of Australian customer-owned banking organisations anticipating being involved in merger activity this year, and a further 20% considering the possibility.

This is why now is the right time for us to come together.

Not at all.

After announcing a Memorandum of Understanding in August 2021 to explore merging, both organisations conducted extensive due diligence and unanimously agreed the proposed merger is in the best interests of their respective member bases.

Chair of Greater Bank, Wayne Russell, and Chair of Newcastle Permanent, Jeff Eather, formalised the Boards’ endorsement by signing a Merger Implementation Agreement (MIA) in March 2022.
The merger proposal will require approval from Australian Prudential Regulation Authority (APRA) before being put to members of both organisation at meetings likely to take place later in 2022.

Absolutely. Following regulator review, the merger proposal will be put to members of both organisations to vote on at meetings likely to take place later in 2022. 

Voting eligibility is determined in accordance with our Constitution and is the same criteria used to determine voting eligibility at our AGM each year.

An eligible voter must be over 18 years of age and have held at least $500 (in aggregate) on deposit with Greater Bank continuously for a period of at least six months ending on the last 30 June before the general meeting at which you wish to vote.

If the general meeting at which the proposed Merger is to be voted on is held between 1 July 2022 and 30 June 2023, an eligible voter must have held at least $500 (in aggregate) on deposit with us continuously from 1 January 2022 to 30 June 2022.

You can read more about voting eligibility in our Constitution

Both organisations have strong foundations, with highly successful and iconic brands, and shared excellence in customer service.

We understand that each of our customers have a strong affinity to their brands and all of the things they love about their organisation.

As a merged entity, we think there is a tremendous opportunity to use each brand effectively to attract more customers to our offerings.

For more than 75 years, Greater Bank and Newcastle Permanent have operated side-by-side and, while competing for customers, have always shared a common purpose of supporting the people and communities that support us.

In a world of big banks, we’ve always punched above our weight. We are both financially strong and through our fierce commitment to being customer-owned, have each built loyal customer bases that span generations.

Combining our resources and financial strengths provides an unparalleled opportunity to grow and innovate, to deliver even better value for our customers. This has been, and remains, the foundation for entering into such an arrangement.

Merging will also enable us to keep pace with increasing regulation and reporting, and the rapid advancements in banking technology, both of which require significant investment.

Combined, Greater Bank and Newcastle Permanent have $19.8 billion in total assets and a customer base of approximately 600,000. In merging, we will create one of Australia’s largest customer-owned financial institutions, and positioning us to be a real challenger and remain a significant competitor in the banking sector.

Greater Bank and Newcastle Permanent have built reputations for delivering competitive banking for our local communities. Great value with a personal touch. This merger puts us in the best position to ensure we can continue to do that for generations to come.

The Boards of both organisations firmly believe this is a highly compelling opportunity to grow and compete, while preserving the values and approach that make us who we are. Members are encouraged to vote in favour of this merger when given the opportunity later this year.

Both organisations are financially strong, and we each have exciting plans for growth independently.

If the merger does go ahead, in those first two years we'll be developing our future plans for growth and new services.

For now, we won't have all the answers, but our intentions with the merger are to serve our customers and our region even better.

Success in the banking sector is dependent on the ability to rapidly adapt, meet evolving customer expectations, and meet new regulatory requirements. In fact, a decade ago there were approximately 200 mutuals across Australia, today that number is fewer than 70.

So, it comes as no surprise to see other customer-owned institutions follow our lead in exploring possible mergers. The announcement between Heritage Bank and People's Choice has no impact on our plans to unite with Newcastle Permanent.

Our people and branches

There will be no forced redundancies as a result of the merger for at least two years.

Our vision for the merged entity is to be a vibrant employer of choice – helping to forge the careers of more than 1,600 employees and providing our people with growth and development opportunities in our operating regions, including the Hunter.

Together, Greater Bank and Newcastle Permanent will continue to operate the same number of branches for at least two years.

The merged organisation will maintain its headquarters in Newcastle.

Commitment to community

Greater Charitable Foundation and Newcastle Permanent Charitable Foundation will continue to support the charitable sector as they have done since 2011 and 2003, respectively.

As a merged group, we’ll consider how to operate both foundations and continue to support the tremendous impact and difference they provide to charities and the community.

We're here to help

Got a question?

Check out our extensive FAQ section.

View FAQs

Drop in

Find your nearest Branch or ATM

Branch and ATM Locator

Get in touch

Call us Monday to Friday
8:00am to 6:00pm
and
Saturday 8:00am to 1:00pm AEST

Call 13 13 86

* The Advisor, People Power: the changing face of customer-owned lenders, 3 August 2021

^ KPMG Mutuals Industry Review 2021: Purposeful growth in mutual banking, 2021

Featuring in the photo are: Greater Bank Chair, Wayne Russell, Newcastle Permanent Chief Executive Officer, Bernadette Inglis, Greater Bank Chief Executive Officer, Scott Morgan and Newcastle Permanent Chair, Jeff Eather.