Bank Australia has finalised its acquisition of Australian Unity Bank, highlighting the growing momentum in Australia’s mergers and acquisitions (M&A) market.
The Victoria-based mutual bank first announced its intention to purchase Australian Unity Bank, also headquartered in Victoria, in November 2024. The combined entity is expected to strengthen Bank Australia’s position within the sector. Damien Walsh, Managing Director of Bank Australia, commented that the acquisition “is about creating the scale and capability to deliver an even greater customer experience for our customers into the future.”
The merger will see 29,000 Australian Unity customers join Bank Australia, expanding the customer-owned institution’s membership base to more than 320,000. Clients of the digital-only Australian Unity Bank will also gain access to Bank Australia’s physical branch network.
Following the integration, all accounts — including mortgage products — will fall under the Bank Australia portfolio. Together, the merged banks now manage nearly $17.5 billion in assets under management (AUM) and employ close to 900 staff.
Rohan Mead, Chief Executive Officer and Group Managing Director of Australian Unity Bank, said: “We’re confident this move will deliver strong outcomes for our banking members.”
Industry observers note that the deal reflects a broader trend of consolidation within Australia’s financial services sector. Globally, deal volume reached approximately $5.27 trillion in 2024, an 8% increase on the previous year, according to MergerMarket data. In Australia, total deal value surged by nearly 30%, rising from more than $110 billion to almost $142 billion over the same period. For Bank Australia, this marks its second major transaction in 2024, having completed its merger with Qudos Bank in July.
M&A activity has been widespread across the market. In September, Recludo Group, which specialises in acquiring mortgage brokerages, announced it had purchased three firms since the beginning of the year. That same month, alternative asset manager Salter Brothers agreed to acquire private credit fund manager Causeway Asset Management Limited.
On the lending side, Regional Australia Bank and Summerland Bank confirmed in April that they would merge operations by 2026. In September, customer-owned banks Great Southern Bank and P&N Group (Police and Nurses Limited) signed a memorandum of understanding (MOU) to explore a potential merger. Other institutions considering consolidation include Auswide Bank and MyState Bank Limited, G&C Mutual Bank and Unity Bank, Teachers Mutual Bank Limited and Australian Mutual Bank Limited, as well as People’s Choice and Heritage Bank.
