Newcastle Permanent and Greater Bank merger gets green light for 2023
A proposed merger between Newcastle Permanent and Greater Bank received the green light from members this week, laying the groundwork for the creation of Australia’s largest customer-owned bank.
The outcome was reached with “yes” votes from both organisations easily surpassing the required 75 per cent threshold.
The new entity, to be called Newcastle Greater Mutual Group Ltd, will manage more than $20 billion in assets. Its customer base will also number around 600,000.
The role of chair of the new organisation will be assumed by Greater Bank’s current chair Wayne Russell, while CEO of Newcastle Permanent, Bernadette Inglis, will become Group CEO. Four directors from each organisation will make up the board.
“This is a landmark outcome for our respective organisations, customers and employees that will enable us to create a financial powerhouse based here in the Hunter,” said Russell.
“Both Boards shared a vision for a merged entity that would make us a more resilient force in the market, better positioned to continue to compete with the major banks and deliver high value, competitive banking for our customers.”
According to Inglis, members decided to preserve both brands on the basis of the strength and visibility of each.
“We know our brands, Greater Bank and Newcastle Permanent, are important to our people and our customers, and we’re keeping both,” she said.
“Maintaining both brands is, and will remain, critical to our ongoing strategy with Newcastle Greater Mutual Group Ltd having the resources to see them grow and evolve.”
Following the merger, customers will be able to access either brands’ ATM network for free using their existing card. There are also no plans to change customers' bank account details.
Customers have also been assured that the new organisation’s headquarters and contact centres will remain in the Hunter region.
“While we have big plans to grow and develop our business, we remain committed to keeping skills and expertise, jobs and investment here in regional NSW,” said Russell.
The merger will come into effect on 1 March 2023, pending final approval from the Australian Prudential Regulation Authority.
If you’d like to learn more about the banking products and services offered by Newcastle Permanent and Greater Bank, browse the ratings and reviews on Mozo.
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