Newcastle Permanent and Greater Bank have finalised an agreement to merge and create Australia’s ‘largest customer-owned financial institution’.

The merged entity will have approximately $14.68bn (A$19.8bn) in assets and customer base of approximately 600,000.

As per the terms of the agreement, both the companies will retain their brand identity and will have a combined network of 100 branches.

Furthermore, they will employ over 1,600 people, with no forced redundancies for at least two years.

Wayne Russell, chair of Greater Bank, will take charge as the chair of the merged entity. Newcastle Permanent chair Jeff Eather will assume the role of deputy chair.

Additionally, Bernadette Inglis, chief executive of Newcastle Permanent will be CEO and Scott Morgan, currently, CEO of Greater Bank will take charge as the entity’s deputy CEO.

Russell added: “Our collective capabilities and capacity will enable us to invest more in technology and innovation, and offer great value for our customers.”

Inglis said: “A merger provides an opportunity for transformational change to future-proof both organisations – more so than can be achieved individually. It enables the combined organisation to carve out a presence as a beacon for the mutual sector, and be a significant competitor in retail banking.”

The merger is subject to regulatory approval and other customary closing conditions. It is expected to be completed by early 2022.