Borrow
BOQ sets sights on big 4 banks with latest merger
The Bank of Queensland has announced that it will buy ME Bank for $1.3 billion in a bid to challenge the dominance of the big four banks.
BOQ sets sights on big 4 banks with latest merger
The Bank of Queensland has announced that it will buy ME Bank for $1.3 billion in a bid to challenge the dominance of the big four banks.
Members Equity Bank (ME Bank) has announced that it would join the Bank of Queensland (BOQ) in order to create a “genuine banking alternative powerhouse”.
Combined, the group will have total assets over $88 billion, with total deposits of more than $56 billion.
Together they will serve over 1.3 million Australians, with BOQ servicing 900,000 customers, while ME Bank has 450,000.
ME Bank’s shareholders, who represent 26 of Australia’s industry super funds, unanimously endorsed BOQ’s offer, which was recommended by the board.
The chairman of ME Bank, James Evans, described the merger as a natural fit, as both homegrown banks have a range of easy to understand products and services.
“Today’s decision represents a permanent shift for the better in the Australian banking landscape. This agreement brings together two culturally aligned organisations to form what will be an enhanced and influential banking alternative for customers,” Mr Evans said.
“The increased scale and complementary offerings will benefit customers and employees alike. The combined group will be able to offer a wider network of service options, deeper resources, and the added reassurance that comes with a larger banking organisation.
BOQ chief executive George Frazis said the partnership is “highly complementary” due to similar customer-centric cultures.
“The acquisition of ME Bank will create a compelling alternative to the big banks, providing better customer experience, greater opportunities for our people and, importantly, increase value to our shareholders,” Mr Frazis told media on Monday.
The acquisition will roughly double the size of BOQ’s retail bank and increase that segment’s earnings from 36 per cent to more than 50 per cent.
The acquisition will also diversify BOQ’s portfolio and build out its east coast presence – ME Bank will remain based in Melbourne and retain its branding – as it enters the second year of its multi-brand digital transformation strategy.
“I have to say it’s truly an exciting time for BOQ. The strategy is already delivering meaningful results and has laid the foundation for this game changing acquisition,” Mr Frazis said.
The transaction is expected to be finalised by August, and ME Bank emphasised that it will not affect or change existing customers’ accounts or arrangements, nor their relationship with ME Bank.
About the author
About the author
Banking
CBA liable for overcharging 1,510 customers in excess of $2.2m
Commonwealth Bank has been held accountable for overcharging 1,510 customers in excess of $2.2 million, among a suit of other breaches including “deceptive conduct”. ...Read more
Banking
Consumers let down by government failures on the banking RC
In the two years since the financial services royal commission, super fund members, bank customers and insurance policyholders have all been let down by the federal government’s failure to implement...Read more
Banking
ASIC’s chair to leave despite being cleared of wrongdoing
ASIC chair James Shipton will leave the financial regulator permanently, despite being cleared of any wrongdoing. ...Read more
Banking
NAB snaps up neobank in $220m deal
NAB is set to snap up a neobank in a deal said to cost $220 million, as it looks to enhance its digital offering. ...Read more
Banking
368k Australians potentially eligible for Westpac class action: Are you one of them?
The Federal Court is set to notify 368,000 Australians that they might be eligible to join a consumer credit class action against the big four bank. ...Read more
Banking
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament. ...Read more
Banking
ANZ cops $10m penalty for wrongful fees
The Federal Court of Australia has found that banking giant ANZ engaged in unconscionable conduct and breached its obligations as a financial services licensee. ...Read more
Banking
How $800m could make banking better
The federal government’s digital business plan to drive Australia’s economic recovery “will make banking faster and easier”, according to an industry group. ...Read more
Banking
CBA liable for overcharging 1,510 customers in excess of $2.2m
Commonwealth Bank has been held accountable for overcharging 1,510 customers in excess of $2.2 million, among a suit of other breaches including “deceptive conduct”. ...Read more
Banking
Consumers let down by government failures on the banking RC
In the two years since the financial services royal commission, super fund members, bank customers and insurance policyholders have all been let down by the federal government’s failure to implement...Read more
Banking
ASIC’s chair to leave despite being cleared of wrongdoing
ASIC chair James Shipton will leave the financial regulator permanently, despite being cleared of any wrongdoing. ...Read more
Banking
NAB snaps up neobank in $220m deal
NAB is set to snap up a neobank in a deal said to cost $220 million, as it looks to enhance its digital offering. ...Read more
Banking
368k Australians potentially eligible for Westpac class action: Are you one of them?
The Federal Court is set to notify 368,000 Australians that they might be eligible to join a consumer credit class action against the big four bank. ...Read more
Banking
Government introduces royal commission laws
The government is striving to implement a number of the royal commission recommendations in a package that was recently introduced to Parliament. ...Read more
Banking
ANZ cops $10m penalty for wrongful fees
The Federal Court of Australia has found that banking giant ANZ engaged in unconscionable conduct and breached its obligations as a financial services licensee. ...Read more
Banking
How $800m could make banking better
The federal government’s digital business plan to drive Australia’s economic recovery “will make banking faster and easier”, according to an industry group. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
