Cyprus` largest lender, the Bank of Cyprus, has announced that its Chief Executive Officer, John Patrick Hourican, informed the Bank’s Board of Directors of his intention to step down from his post in late summer 2015, citing personal reasons.
“Mr. Hourican’s decision to leave the Bank is a personal one and he intends to return to Ireland to spend more time with his young family. He indicated that he is not leaving to take up another role elsewhere,” the bank said in a statement.
On his departure from the Bank, Hourican will have spent nearly two years in Cyprus and led the Bank during an extraordinarily difficult chapter in its history.
“A successor to Mr. Hourican will be announced in due course,” the Bank said in a press release.
In a statement to the staff Hourican said “I have been very proud to be part of the Bank of Cyprus family during this period and to have led this chapter in the Bank’s rehabilitation.”
“It has been an honour to work with so many talented people and to play my part in laying the foundations for a better bank to serve the Cypriot economy into the future,” he adds.
On his part Dr. Josef Ackermann expressed appreciation “for the remarkable progress achieved under John Hourican’s leadership.”
“He leaves behind a strong management team and a bank in a steadily improving financial shape, with restored employee, investor and customer confidence. We wish him all the best in his future endeavors and we are looking forward to continuing to work with him in the months ahead,” he added.
Hourican assumed his duties with the Bank of Cyprus as the island`s largest lender emerged from a resolution process, which saw 47.5% of the bank`s unsecured deposits (over €100,000) converted to shares in a bid to cover its capital needs, while it absorbed the assets of Cyprus Popular Bank, along with the €9.5 billion of CPB`s emergency funding from the ECB. These measures were part of the conditions for Cyprus` €10 billion rescue plan.
Hourican also steered the bank into a €1 billion capital raise last year that attracted foreign investors such as Wilburr Ross and led to a new board of Directors under former Deuscthe Bank chief Josef Ackermann. The Bank passed the EU-wider stress test carried out by the ECB and the European Banking Authority. However the greatest challenge the bank is currently facing is tackling its non-performing loan stock that in 2014 reached €14.9 billion or 63% of its loan portfolio.
“Today the Bank is much better positioned to serve its customers, to offer opportunity to its employees and to create returns for its shareholders,” the bank statement noted, adding that the Group has a clear strategy. The integration of the Bank with Laiki Bank is complete. Good progress has been made in selling and de-risking overseas businesses. The deposit base has stabilized and the Bank has begun to make progress with its non-performing customers. ELA funding has been dramatically reduced, and, importantly, Euro 1 billion of fresh equity has been raised to ensure that the Bank is well capitalized amongst its European peers,” the statement noted.
These initiatives, the bank concludes, “will continue under the strong management team in place under the guidance of the new Board of Directors for the benefit of the Bank’s depositors and borrowers and of the Cypriot economy in general.”
