Bendigo Bank to acquire RACQ Bank loan and deposit book

Bendigo Bank has agreed to acquire RACQ Bank’s retail loan and deposit book (subject to regulatory approval). The acquisition will see more than 90,000 customers join the Bank and enjoy its personalised customer service and quality products.

The acquisition of RACQ Bank’s book, which comprised $2.7 billion in loans and $2.5 billion in deposits as at 30 June 2025, will be funded from the Bank’s cash reserves and is expected to drive improved returns for shareholders.

Bendigo Bank CEO, Richard Fennell, said the acquisition would diversify the Bank’s customer base, lifting the Bank’s exposure to the key market of Queensland from 15% to 18% of its residential lending portfolio.

“We look forward to welcoming RACQ’s members to our Bank where they will enjoy the same personalised service and quality products as our 2.9 million existing customers,” Mr Fennell said.

“RACQ Bank's strong deposit franchise and member focus complements Bendigo Bank's own deposit strength and longstanding focus on our customers and the community.

“This acquisition leverages our proven ability to efficiently integrate significant portfolios and will drive improved shareholder returns through cost efficiencies and geographic diversification,” Mr Fennell concluded.

RACQ Bank’s members will be migrated to Bendigo Bank products at completion, which is expected to take place during the second half of 2026.

The migration will be enabled by the Bank’s transformation program team which will complete the multi-year reduction of our core banking systems from eight in 2019 to one by the end of calendar year 2025.

Upon completion, Bendigo Bank will enter into a referral arrangement for deposits, savings and home loans with RACQ which has 1.7 million members.

The announcement follows the recent nationwide roll out of the Bendigo Lending Platform across all of our branches and an expanded partnership with Google to deliver the latest AI capabilities, digital skills, and cybersecurity defences.

Bendigo Bank’s longstanding purpose is to feed into the prosperity of its customers and the community. Building scale and delivering long term sustainable growth will assist the Bank to continue delivering on its purpose for future generations.

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