RACQ TO ADD BANKING SERVICES AFTER QT MUTUAL MERGER
Written on the 1 December 2016
THE $3.9 billion merger between RACQ and QT Mutual Bank has been approved by the bank's members, clearing the way for Australia's first motoring body with bank services.
The proposal secured an overwhelming 90 per cent support among QT Mutual members, easily meeting the 75 per cent requirement and the transaction can now proceed.
It was the last hurdle for the deal, following its approval by the Supreme Court of Queensland.
"RACQ is giving Queensland a banking brand they can trust and believe in," says RACQ Group CEO Ian Gillespie.
"We want to be a trusted alternative to the shareholder-owned, profit-driven banks.
"The merger will offer greater benefits to members of both organisations, with a highly compatible suite of premium products and services and a common focus on delivering exceptional service and value."
The new business will come together under a yet-to-be-decided name, but RACQ will be the lead partner.
It will create a banking division within the existing structure of the motoring body.
QT Mutual Bank, which last year made a $6.7 million profit, brings around 60,000 members and $1.37 billion in assets to the deal.
RACQ has more than 1.5 million members and made a profit of $50 million last year.
While QT has just 14 branches, mainly around Brisbane, RACQ has around 150 giving the bank a much larger reach across the state.
"RACQ wants to diversify into banking while QT Mutual Bank wants scale and investment in technology to achieve growth, that's why this deal makes sense," says Gillespie.
Gillespie says that together, the organisations can achieve things for their members that they couldn't do on their own.
"Our State-wide footprint and digital capabilities means RACQ can provide the tools modern banking customers' demand, while holding true to our values of service and giving back to our members," says Gillespie.
"RACQ will now take some time, at least into the second half of 2017, to prepare the bank for an influx of new customers through the extensive RACQ membership base and to meet the expectations of RACQ members into the future."
There will be no jobs lost in the process. Current QT Mutual Bank CEO, Steve Targett, will continue in the role, reporting to Gillespie.
RACQ's priorities over the next 12 months include broadening the bank's digital offering.
"We intend to deliver increased investment in technology and new digital capabilities including a new mobile app, greater internet banking functionality and enhanced platforms that enable members to apply for issued products online."
McCullough and Robertson advised on the merger.