The Co-operative Bank appoints a new Chief Executive

Media Release

The Co-operative Bank appoints a new Chief Executive

The Co-operative Bank chairman Steven Fyfe announced today the appointment of Bruce McLachlan as the new CEO of the bank.

“We’re delighted to appoint Bruce McLachlan. With Bruce we have both a very experienced New Zealand banker and someone with the right qualities to lead The Co-operative Bank to become a growing force in the New Zealand retail banking market,” says Mr Fyfe.

Mr McLachlan has led both business and personal banking teams at a senior level during his banking career. His appointment is subject to approval from the Reserve Bank of New Zealand.

“Appointing Bruce as CEO concludes a momentous year for us and means that The Co-operative Bank has all the necessary foundations in place,” says Mr Fyfe.

“In the past year we’ve achieved our banking licence, received a credit rating upgrade, changed our name and won the inaugural 2011 CANSTAR Blue Customer Satisfaction award for banking, receiving the maximum 5 stars in every category.”

Gareth Fleming, the Acting CEO for the past four months, will return to his role as General Manager – Marketing and Products.

“The Board acknowledges with appreciation Gareth’s commitment and performance during this period.”

Mr Fyfe says The Co-operative Bank’s 2012 year-end results, released today, were also in line with expectations.

The bank’s underlying profit before tax was $7.2 million, compared with $7.4 million in 2010/11.

“Although the bank’s pre-tax operating profit of $6.6 million is down on the previous year, we’re pleased with the result, as the reduction in profit is primarily due to the one-off costs associated with bank registration and re-branding as The Co-operative Bank,” says Mr Fyfe.

Deposits increased by 4% and were up by $51 million to $1.21 billion and lending increased by $43 million bringing total lending to $1.21 billion. Total reserves were up by $5.5 million on last year to $129 million. Capital Adequacy increased to 17.5% and is well in excess of the regulatory minimum of 8%.

Mr Fyfe says he is confident about The Co-operative Bank’s future.

“The Co-operative Bank offers a genuine choice for customers as both a New Zealand and member-owned bank and our goal is to share our award winning banking experiences with more and more New Zealanders.”

Key end-of-year results for 31 March 2012 were:
Operating Profit (pre-tax) $6.6 million
Underlying Profit (pre-tax) $7.2 million
Capital Adequacy Ratio Increased to 17.5%
Total Reserves Up by $5.6 million to $129 million
Deposits Up $51 million to $1.21 billion
Loans Up $43 million to $1.21 billion

ENDS

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