P&N Bank posts $30.4M profit, advances merger

• P&N Bank lifts annual profit to $30.4 million and progresses merger plans.
• The WA mutual lender's share price saw no update following the mutual structure announcement.
• The company stated that the merger is intended to build scale and improve competition against larger retail banks.

P&N Bank reported an annual net profit of $30.4 million for the 12 months ended June 30, representing a 7.6% increase from the previous financial year.

The profit growth was supported by a 5% increase in loan volumes to $8.3 billion and a 7.6% rise in total deposits to $8.2 billion.

“If anything, we are even more comfortable now that we have got to understand each other's businesses,” said P&N CEO Andrew Hadley.

The mutual lender recorded a $3.3 million impairment of intangible assets alongside a $1.6 million increase in credit impairments during the period.

The proposed amalgamation with Bank Australia remains on track for completion in mid-2027, subject to member and regulatory approvals.

The combined entity is projected by the company to create Australia's largest customer-owned bank with 530,000 customers, 1,500 employees, and $30 billion in assets.