BoQ Acquires ME Bank
(23 February 2021 – Australia) BoQ has announced it is acquiring ME to create a “genuine banking Big Four alternative powerhouse”.
ME Bank will join BoQ after the former secured a A$1.3 billion equity funding package and ME Bank’s shareholders, who represent 26 of Australia’s industry super funds, unanimously agreed to accept an all-cash offer from the Brisbane headquartered lender as it fended off a competing offer from ANZ.
The deal results in BoQ expanding its geographic risk, as its A$44 billion loan book is Queensland centric while ME Bank’s A$27 billion predominantly superfund based book is Victoria dominant. The deal slices Queensland loans as a proportion of total loans from 42 percent to 31 percent. NSW now represents 29 percent of loans and Victoria 21 percent.
Combined, the group will have pro forma total assets over $88 billion, with total deposits of more than $56 billion. The ME brand, employees, operations and Melbourne-based presence will be retained, “reflecting BoQ’s multibrand strategy and the commitment of both banks to retain their common customer-centric ethos and values”
BoQ is at the outset of a three-year technology platform upgrade that will adopt a cloud-based core retail banking platform across the group, allowing the Bank to roll out new products and services swifter than key competitors. Notably ME Bank was also moving to the same core Temenos banking platform.
“We are truly excited to be able to welcome ME Bank customers and team members to the BOQ Group family. There is no doubt this is a tailor-made match because of our common objectives and customer-first cultures” stated BoQ Group CEO & Managing Director, George Frazis, who boasts extensive ‘multibrand’ management experience from his tenure at St George and Westpac.
“Our multibrand strategy at BoQ means that the ME brand will be maintained, and their people will be able to continue doing what they do best – offering simple and straightforward banking products and terrific service to their customers. We are looking forward to the future with ME Bank on board” MR Frazis added.
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