Australian Mutual Bank Ltd and Teachers Mutual Bank Limited explore merger to bring two trusted mutuals together
Highlights:
- Would create one of the largest mutual banks in Australia, with $13.4 billion in total assets and more than 300,000 members
- Combining the financial strength of both banks will increase investment in member service, modern technology, safety and security
- The merged bank will maintain its 13 branches across the ACT, New South Wales, Victoria, and Western Australia
- The Australian Mutual Bank brand will be retained upon merging
- Creates broader career opportunities for 750 people, with no forced redundancies as a result of the merger
- Common technology will simplify integration resulting in faster benefits to members
- Ongoing commitment to profit for purpose and member-owned banking.
Australian Mutual Bank Ltd and Teachers Mutual Bank Limited today announced the signing of a Memorandum of Understanding to explore merging the two mutual banks.
The potential merger would bring together Australian Mutual Bank Ltd and Teachers Mutual Bank Limited to create one of Australia’s largest member owned banks an organisation with $13.4 billion in total assets and more than 300,000 members. Bringing these two trusted organisations together would provide immediate benefit and opportunity for better member outcomes. Combining the financial strength of both banks increases scale and provides a platform for strong investment in enhanced products and services, modern technology, cybersecurity and fraud/scam prevention, and digital banking services.
CEO of Teachers Mutual Bank Limited, Anthony Hughes said: “Both banks have strong foundations and an ongoing commitment to member-owned banking. We have a shared excellence in delivering great service for our members, and supporting the vocations and communities that support us. “Combining our financial strength, together with the common technology platforms, will allow us to more quickly invest and deliver the services that matter to our members.”
CEO of Australian Mutual Bank Ltd, Mark Worthington said: “As member-owned banks, we are committed to our members and communities. Our driving purpose is to provide ethical and valuable banking services to our members. A vision of the merged bank is to offer rewarding careers for our 750 employees. As a merged entity, we would also remain committed towards championing sustainability and retaining our B Corporation Certification.”
The merged entity will continue to engage with the Australian Mutuals Foundation, as well as continue to provide support to the industries and communities that support it, through sponsorships, scholarships and other community partnerships.
The MOU sets out a proposal for an integrated Board to govern the merged entity and the appointment of a CEO. The leadership of the merged organisation will leverage the strengths of both banks ensuing retention of critical knowledge and expertise from both organisations. It is proposed that the Chair of Teachers Mutual Bank Limited will Chair the merged entity, and the current CEO of Teachers Mutual Bank Ltd, Anthony Hughes will be Chief Executive Officer. Mark Worthington, the current Chief Executive Officer of Australian Mutual Bank Ltd will provide support in the initial months post-merger.
Completion of the merger remains subject to due diligence, approval by regulators and our members. Subject to these approvals, target completion date for the merger is 2026.
