Failed P&N-CUA merger won’t slow Aussie mutual bank consolidations: S&P

The two banks are expected to continue seeking consolidations.

Credit Union Australia (or Great Southern Bank) and Police & Nurses Limited (PNL) are likely to continue seeking merger opportunities despite their aborted consolidation discussions.

The two Australian banks announced that they will not be proceeding with their proposed merger, first announced on 22 September 2025.

“The aborted tie-up does not affect either entity's credit standing, and we expect them to keep seeking merger opportunities to support their strategic goals and longer-term viability,” S&P Global Ratings said in a report.

“Despite the cancellation, we continue to see a compelling rationale for the further consolidation of the mutual banking sector,” it added.

Credit Union Australia and Police & Nurses predominantly operated in the residential lending market, the ratings agency said in a 29 January 2026 report.