Paul Brock, Kiwibank's CEO of seven years, resigning at end of the year

Kiwibank says Paul Brock, its CEO of seven years, will leave the bank at the end of 2017.

Brock has worked for the state owned bank since it was launched in 2002, succeeding founding CEO Sam Knowles in September 2010. Kiwibank says he is resigning.

Over the past year Kiwibank has gone through an ownership broadening with NZ Post selling 47% of the bank to the New Zealand Super Fund, which now has a 25% stake, and the Accident Compensation Corporation which has a 22% stake. The bank has also had a messy regulatory capital dispute with the Reserve Bank and is facing a cost blow out in its core banking system upgrade.

In a statement Kiwibank's chairwoman Susan Macken said Brock had done a great job setting the bank up to continue to expand and prosper. Macken said a search for a new CEO would begin immediately.

The statement quoted Brock (pictured) saying he has experienced a “very rewarding” 17 years with Kiwibank, but now wants to take a break and "consider what the future holds."

Before becoming CEO Brock had been Kiwibank's general manager of savings and transactions and general manager of marketing. Prior to Kiwibank he worked for Westpac and Trust Bank.

Kiwibank is due to issue its June-year financial results early next month.

 

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4 Comments

Why ?

Not the platitude reason , the real reason .

Covering his arse so if the economy tanks he's "not responsible." He's doing a Key and getting out while he can.

Shades of DFC?
"The Development Finance Corporation was established in 1964 as a joint venture between the New Zealand Government, the Reserve Bank of New Zealand, and the major trading banks of the time. Under the State Owned Enterprises Act 1986, it was corporatised as DFC New Zealand Limited. In 1988 it was sold to the National Provident Fund and Salomon Brothers. DFC New Zealand Limited was placed into statutory management in 1989 and liquidated in 1991, after ill-fated investments in property speculation saddled it with a mountain of bad debts."
The property speculation but may have varied ( Kiwi bank is still heavily reliant on 'receivables', many backed by residential property) so the future could be interesting.....

Kiwibank is, arguably, not just heavily reliant, but the bank that's most reliant on residential property mortgages. Which isn't really surprising given the intentions when it was set up.

Their March statements have 88% of their loan balance as "residential". Even TSB, who I'd guess at being the next most exposed, sits at "only" 82%.