Regional Australian banks MyState and Auswide have finalised their merger, six months after announcing their plan to unite.
The merger combines the ASX-listed challenger institutions MyState, a Tasmania-based bank with attached wealth trustee services, with Auswide, based in Queensland and offering both banking and asset financing services.
The pair flagged their intention to merge in August 2024, declaring their forthcoming marriage “a merger of equals”.
The agreed deal – while for now retaining separate brands – has seen MyState acquire a 100 per cent stake in Auswide, making it an indirect, wholly owned subsidiary of the Tasmania-based bank (Auswide shareholders, who waved the deal through on 3 February, have received 1.112 new MyState shares for each Auswide share they own). Auswide is expected to delist from the ASX on 20 February.
The merged group will operate under four existing brands: MyState Bank, Auswide Bank, SelfCo (Auswide’s small business asset financing solution) and TPT Wealth (MyState’s wealth arm).
While the pair have completed the formal part of their merger, the operational integration of the businesses will take at least three years to complete, MyState confirmed in an ASX-release.
The merger is expected to deliver pre-tax cost synergies of between $20 million to $25 million per annum by the end of FY27, MyState said, and ensure an earnings per share accretive business by FY26.
Collectively, the new combined bank boasts a customer base of more than 272,000 (over 180,000 from MyState and 92,000 from Auswide), a loan book of more than $12.7 billion and a deposit book of $9.9 billion.
The group will offer its services across 23 branches (covering regional and metro Queensland and Tasmania), two Australian-based contact centres, brokers and mobile lenders, alongside each bank’s dedicated mobile banking apps and internet banking services.
MyState managing director and chief executive Brett Morgan said the merged entity can “look forward to growing into a stronger and larger regional bank with a more diverse customer and geographic footprint”.
He added: “We will be in a great position to invest and to provide Australians with a real alternative for their banking, asset finance and wealth needs. The merger will significantly enhance the scale of the Group and increase funding flexibility.”
Newly appointed MyState chair Sandra Birkensleigh further added: “We expect significant long-term benefits for shareholders from merging two strong, customer-centric businesses with quality loan books and deep roots in their local communities.”
