QUEENSLAND Professional Credit Union Ltd (trading as YCU - Your Credit Union (YCU) and Auswide Bank Ltd (Auswide Bank (ASX: ABA) today announced that they have entered into a Merger Implementation Agreement pursuant to which the two companies propose to merge.
The Boards of both companies have unanimously endorsed the proposed merger as it will bring together two highly compatible financial institutions. Both YCU and Auswide Bank:
- were founded at the same time in the mid-1960s;
- have strong roots in community banking;
- view customer service and satisfaction as paramount;
- ascribe considerable value to their employees; and
- are headquartered in Queensland.
Should the merger be successful, the members and customers of YCU and Auswide Bank will enjoy:
- high levels of engagement and service;
- an extended branch network throughout Queensland;
- a wide range of financial products and services;
- an expanded technological and digital capability; and
- the financial strength and enhanced capability of a larger banking organisation.
YCU's Chairman, Gordon Rutherford said "the proposed merger is a tremendous combination of two companies with much in common. Auswide Bank is an outstanding, culturally-compatible, merger partner and the YCU directors are very pleased to recommend the merger proposal to YCU members".
Auswide Bank's Managing Director, Martin Barrett said "this is not a big bank takeover but a merger of two similar organisations to create an even more compelling banking proposition for our collective stakeholders.
Auswide Bank customers will now have access to a conveniently located branch in the Brisbane CBD which will also assist our growth in South East Queensland.
YCU members will have access to Auswide Bank's broad range of banking capabilities and geographic footprint".