Wednesday, April 22, 2015

CEO of Cyprus Bank quits

CEO of Cyprus Bank quits on personal account
Apr 22, 2015

Bank of Cyprus CEO John Hourican, an Irish banker who was called in to help the lender rise up from its ruins in 2013 resigned for “personal reasons” on Tuesday, the bank said in a statement.

It said that Hourican will work for about four more months until the end of his notice.

Hourican was appointed Bank of Cyprus CEO shortly after it was directed by Cyprus’s international lenders to impair uninsured deposits over 100,000 euros (107,000 U.S. dollars) by 47.5 percent to recapitalize.

The world’s first bail-in as it has since become known, was part of a resolution of the Cypriot banking system, and involved the winding down of Laiki Bank, the eastern Mediterranean island’s second largest lender, and its folding into Bank of Cyprus.

Cyprus itself received a 10-billion-euro bailout by the Eurogroup and the International Monetary Fund after a prolonged crisis.

Hourican told his staff in a statement that he planned to relocate to Ireland but added that he had no other job yet.

Bank sources said that he would like to spend more time with his family.

“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,” Hourican’s statement reads.

Bank of Cyprus was recapitalized last year, drawing funds from American billionaire Wilbur Ross and the European Bank of Reconstruction and Development. It passed stress tests conducted EU-wise by the European Central Bank in late-2014.( 1 euro = 1.07 U.S. dollars) Enditem

Bank of Cyprus CEO John Hourican resigns citing personal reasons
By Reuters | 21 Apr, 2015, 01.27PM t

NICOSIA: Bank of Cyprus chief executive officer John Hourican resigned on Tuesday for personal reasons, the bank said.

It said that Hourican, appointed in late 2013, would work his four-month notice period.

A former RBS executive, Hourican was appointed just after the bank was forced to bail in client deposits to recapitalise during the island's financial crisis in 2013.

The bank successfully raised private funds from US and European investors in a separate capital increase last year.

Hourican planned to relocate to his native Ireland, the bank said

Breaking News: John Hourican Resigns from Bank of Cyprus
April 21, 2015

Breaking News: John Hourican Resigns from Bank of Cyprus

John Hourican, Chief Executive Officer of the island’s largest lender, Bank of Cyprus, has officially submitted his resignation from the post.

The bank’s Board of Directors revealed the development today, announcing that Hourican’s resignation will be effective in four months.

As per his employment contract, the CEO has a contractual notice period of four months, though he remains at the disposal of the Board.

“Hourican’s decision to leave the Group is a personal one and he intends to relocate to his home country, Ireland,” a BoC press release reveals. Without another job immediately lined up, the CEO allegedly intends on spending more time with his family.

"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," he said in a statement to staff.

The Board of Directors is expected to discuss in due course issues arising from Hourican’s departure, including the issue of succession.

The Bank’s strategy will continue to be implemented by the management team, under the guidance of the Board of Directors, the bank has noted.

“Τhe Board of Directors expresses its warmest thanks to Mr. Hourican for his contribution to the Group,” the release concludes.

Born in 1970 in Dublin, Ireland, Hourican graduated with a degree in Economics and Sociology from the National University of Ireland and a postgraduate diploma in Accounting from Dublin City University, before beginning his career with Price Waterhouse, initially in Dublin, and later in London and Hong Kong.

Hourican was chief executive of Markets and International Banking for the Royal Bank of Scotland Group plc until 28 February 2013, resigning to "demonstrate responsibility", following RBS's £390 million fine for its involvement in the Libor scandal, although he was not personally implicated.

Appointed to the role of CEO of Bank of Cyprus in October 2013, Hourican publically stated that he would aim to rescue the bank within three to five years. 

Hourican is also a fellow of Chartered Accountants Ireland.

Irish man John Hourican to leave CEO role at Bank of Cyprus
John Hourican took job with Bank of Cyprus to rebuild it after national debt crisis

John Hourican: rejects speculation his return to Ireland is linked to seeking to become the new chief executive of AIB in succession to David Duffy. 

Irish banking executive John Hourican has resigned from his role as chief executive of Bank of Cyprus to return to his home in Dublin where his wife and four young children are based.
Mr Hourican will serve a four months’ notice period with the bank, which is listed on stock exchanges in Cyprus and Athens, before moving back to Ireland.

Speaking to The Irish Times yesterday, Mr Hourican scotched speculation he might be in the frame to become the new chief executive of AIB in succession to David Duffy. “I am not involved in that process nor am I involved in any process for any job in Ireland at this stage,” he said.

Mr Hourican took on the job with Bank of Cyprus in November 2013 with a view to rebuilding the institution following a national debt crisis on the island. This involved merging with the country’s second-biggest bank, shutting 70 branches with a reduction of 1,450 staff, and offloading most of what he described as the bank’s overseas “misadventure”.

It has also repaid €4.5 billion of the €11 billion of emergency liquidity it received, returned to profitability, and raised new equity, including from former Bank of Ireland investor Wilbur Ross. The bank passed the European Central Bank’s stress tests in October and is examining overseas stock market listing options.

Cyprus challenge

Mr Hourican said he took on the job when Cyprus was in “cardiac arrest” and its financial system had been forced to bail-in depositors: “It was a challenge I though I’d like to have a go at. We have achieved more than I thought we would achieve.”

He added it “just feels like a good time to put a little more balance into my life”.

Mr Hourican said he would look for a role in the “British Isles”, possibly outside banking. “I’m fairly agnostic if its banking or something else but we’ll see.”

The board of Bank of Cyprus expressed its “warmest thanks” to Mr Hourican for his contribution. Last year, he was paid just more than €1 million, including a €111,000 pension contribution. Mr Hourican is a former head of investment banking at Royal Bank of Scotland.

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