One of the first tasks of new Chairman of Bank of Cyprus Takis Arapoglou and the new Board of Directors to be appointed on May 14 will be the replacement of CEO John Patrick Hourican who tendered his resignation on Monday. He is leaving in September.
Essentially, a new page will be turned for Bank of Cyprus after the annual meeting. And with both the board chairman and CEO being new, this may mark a new era for the banking environment.
Especially for Bank of Cyprus five years after representatives of foreign shareholders took over the reins of administration, choosing themselves the consultants and senior management.
Although Hourican will leave in the third quarter of 2019, he has already set three challenges for his successor. When asked about the bank’s short-and-medium-term challenges, he focused on three points:
- Firstly, that the bank has to solve the problem of non-performing loans within the next 12 months
- Secondly, that the bank has to continue its digital upgrading, and
- Thirdly, that he bank has to draft an action plan on how to manage its high liquidity amounts which currently reach €4.4 billion.
Hourican has expressed optimism, noting that his successor will find a strong bank with upgraded capital adequacy and substantial excess liquidity.
Although it is premature to start speculation on Hourican’s replacement, the main issue is that Arapoglou will play a significant role in the process towards finding a suitable new candidate. That is, whether a foreign firm will put together a list of candidates for the position of CEO or whether it will be an internal one.
There is also the third option, which is the new chairman himself proposing the candidate he considers most suitable for the position of CEO. Hourican was holding that position since October 2013.
Over the weekend Sky news reported that Hourican was leaving the bank to head NewDay, a consumer finance provider which runs co-branded credit cards with major companies.
He has cited family reasons for leaving the Bank of Cyprus post.