The boards of Teachers Mutual Bank Limited and Australian Mutual Bank Limited have formally approved the proposal to recommend merging the two mutual banks to members following completion of due diligence.
This milestone follows a comprehensive due diligence process “that confirmed the strategic and cultural alignment of the member-owned banks and follows the announcement of a Memorandum of Understanding last December that both banks would explore the benefits of merging” the two banks said yesterday.
This merger will create one of Australia’s largest member-owned banks with combined assets of $13.4 billion serving more than 300,000 members.
Both boards said they “reiterated the strong values alignment between the banks, and that bringing the two trusted and financially strong organisations together would deliver the immediate benefit of increased investment into member service, better products, and fraud/scam prevention technology.”
Teachers Mutual Bank Limited CEO, Anthony Hughes said, “This decision marks an important step towards bringing together our values-driven banks and our approach of putting our members first. Together, we can do even more for our members while remaining 100% member-owned.
“ The due diligence process has confirmed our initial view that this is the right time to bring together our two banks.
“By coming together, we will combine our resources and financial strength to create a stronger bank. This will enhance our ability to deliver excellence in member service, exceptional value, great services, and meaningful support for the vocations and communities that support us.”
Australian Mutual Bank CEO, Mark Worthington said, “Our banks have strong strategic alignment, and merging puts us in a fantastic position—both today and in the long term—to continue to be a challenger in the Australian banking sector.”
Over the past decade, both Teachers Mutual Bank Limited and Australian Mutual Bank Limited have actively participated in mutual banking sector consolidation, which has seen the number of mutual banks almost halved. In the past three years, consolidation has accelerated, with eight of the largest mutual banks either merging or announcing intentions to merge.
The proposed merger will now be submitted for regulatory approval prior to being put to our members for approval in 2026.