Fri. Nov 18th, 2022

Mr Wamsteker, who lead ME Bank from 2000 to 2009, said the boutique lender was initially established to create loyalty between super funds and their members.
When ME bank was set up, the industry funds were not fledging but young in their history. Now they have much greater maturity, much greater market share, investment returns and better service to members.
Its arguably not as important to offer a wide range of products. They can just say were good at what we do so you should come to us.
The Australian Competition and Consumer Commission (ACCC) pre-approved the takeover in January, saying the deal could help BOQ challenge its larger rivals.
In buying ME Bank, which had a loan book of about $26 billion at its latest full-year, BoQs total loans are likely to surge to more than $70 billion, based on its last results, overtaking Bendigo and Adelaide Bank.
Industry sources said BoQ, which runs a multi-brand strategy including Virgin Money, was likely to keep the ME brand but it would seek out synergies, including job cuts, from the deal.
It is likely some of Mr Frazis strategic motivations for the takeover are to grow BoQs loan book; to diversify its customer base; and to take advantage of a banking platform upgrade being undertaken by ME. BoQ is using the same platform in a tech overhaul.
ME and BoQ declined to comment.
The Age and The Sydney Morning Herald revealed last week ME Bank had contacted its significant shareholders saying a deal with BoQ was on the table and close to being finalised.
Mr Wamsteker said a potential merger was always in the background during his time leading the bank, but no formal offers were made or advanced stage negotiations reached, adding ME Bank would continue to enhance diversity in the banking sector.
Hopefully now BoQ becomes a really successful bank and ME Bank is just a part of that.
He said he was not emotional at all about the sale of ME Bank, adding the super fund shareholders should get a good return for their investment. The only criticism Ive ever heard is maybe the funds arent getting enough return. This should prove the nay-sayers wrong.