Bank of Queensland has moved its chief financial officer Ram Kangatharan into the newly appointed role of chief operating officer, giving the strongest indication yet of succession planning at the regional lender.
Long serving BoQ chief executive David Liddy said the creation of the new role was an essential step in driving the bank's strategic goals, including ensuring it would emerge as a key competitor in the nation's banking system.
The move came as BoQ this week raised $1 billion worth of government guaranteed debt. The five year bonds were priced at 35 basis points over the bank bill swap rate.
In the new role Mr Kangatharan will have responsibility for the bank's day to day operations, including achieving the bank's strategic objectives.
This also includes key targets of lowering the bank's cost-to-income ratio to 45 per cent by the end of next year and achieving a 15 per cent return on equity by 2012.
Under the new structure, several of the bank's divisional executives will report to Mr Kangatharan.
“The strategic opportunities available to us are significant and as such, I have decided to consolidate all non-regulatory and legal operating units under one executive to hardwire the small bank differences, and to move to a more process- and outcome-focused organisation,” said Mr Liddy.
Mr Liddy was appointed as BoQ's managing director and chief executive nine years ago. In 2008 he agreed to extend his contract until 2011.
Mr Kangatharan, a former US-based executive with EDS (Electronic Data Systems) in the US, was appointed as the bank's CFO in late 2007.
As a regional lender, BoQ is attempting to carve out a niche in the banking landscape as being an “alternative” to the big four banks.
The shake-up has left open the bank's chief financial officer role, although BoQ has said it has begun a search process for a replacement.
ejohnston@theage.com.au
The Age
