Bank Australia solidifies competitive position with AUB merger: S&P

The bank has earlier announced a merger with Qudos Bank.

Bank Australia Ltd. (BAL) is expected to solidify its competitive position after the completion of the full transfer of Australian Unity Bank Ltd’s (AUB) banking business, according to S&P Global Ratings.

The acquisition brings an estimated A$1.5b in loans and deposits, and 25,000 new customers to BAL.

BAL has about A$15b in loans and deposits, and 300,000 customers.

“We believe the business transfer will further support BAL's earnings stability and fortify its market position among mutual lenders,” the ratings agency said in a press release on 24 November 2025.

Its Qudos Bank merger is a bigger issue for BAL, S&P said.

“BAL will need to navigate the complexities of merging operations and technology, including the full consolidation into a single core banking system. It will also need to manage the drag on profitability stemming from merger-related costs,” S&P said.