MyState Bank proposes merger with Queensland’s Auswide Bank, deal subject to approvals

MyState Bank has announced a proposed merger with Queensland’s Auswide Bank, saying the move would create increased earnings and growth opportunities for the new group.

MyState Bank CEO Brett Morgan at KGV Park. Picture: Chris Kidd

Tasmania’s largest bank, MyState, has announced a merger with a regional Queensland institution and is set to grow by 50 per cent overnight if the deal is approved.

In an announcement to the ASX on Monday, MyState said it had signed a scheme implementation agreement with Auswide Bank.

The agreement still needs to be signed off by Auswide shareholders and the two banks must also obtain approvals from the Australian Securities and Investments Commission to formalise the merger.

MyState Bank has announced a proposed merger with Queensland’s Auswide Bank.

MyState, an ASX 300 company, is one of Tasmania’s largest businesses, with seven branches across the state.

It has 46,000 Tasmanian shareholders and 180,000 customers. It also employs about 350 Tasmanians.

MyState CEO Brett Morgan said the bank had grown by about 45 per cent over the last three years and would grow by a further 50 per cent once it merged with Auswide.

“One of the great things about the merger is it makes sure that a really strong Tasmanian company gets bigger,” he said.

“[This] provides us with an opportunity to invest more into our customers [and] deliver better products and services. It means we can become an even bigger employer in Tasmania.

“We’re doing this because in banking a bit of scale matters and it provides us with the ability to invest more into the customer experience, invest more into risk management and security.”

Mr Morgan foreshadowed an expansion of MyState’s workforce in the wake of the merger and said there would be discussions with Auswide regarding future branding of the group, including a potential name change.

MyState CEO Brett Morgan says the merger will lead to increased earnings and growth potential. Picture: Chris Kidd

Provided that MyState and Auswide secure the necessary approvals for the merger, it’s expected the deal will become effective by late December this year.

Under the proposed merger, Auswide shareholders would receive 1.112 new MyState shares per Auswide share.

Auswide has also entered a binding agreement to acquire 100 per cent of finance lender Selfco.

According to Mr Morgan, there were no current plans to close branches.

“The customers use branches. They are part of the service proposition for our customer base,” he said.

The merged MyState-Auswide group is expected to boast a pro forma loan book of $12.5bn, net assets of $755m, and total deposits of $9.6bn.

MyState also released its results for the 2024 financial year on Monday, posting a net profit after tax of $35.3m.

It surpassed $8bn in lending and attracted more than 14,000 new to bank customers, having launched its new internet and mobile banking platforms.

Originally published as MyState Bank proposes merger with Queensland’s Auswide Bank, deal subject to approvals