St George Bank Faces Senior Vacancy Amid Intense Competition for Top Banking Talent

Strategic Insights -

Frank Conroy, 61, the chairman of St George Bank, has announced his retirement in December, creating a third senior vacancy for the nation's fifth-largest lender. Conroy, a former chief executive of Westpac, has been chairman of St George since 1996 and will also retire as a director of oil and gas company Santos. The bank is seeking two new directors, including a replacement for former deputy chairman John Mallick, who retired last year. This comes as National Australia Bank is seeking seasoned professionals for its board and top management positions.

Key Takeaways:

  • Frank Conroy, St George Bank's chairman since 1996, will retire in December, creating a third senior vacancy for the lender.
  • The bank is seeking two new directors, including a replacement for former deputy chairman John Mallick, who retired last year.
  • Conroy, a former chief executive of Westpac, will also retire as a director of oil and gas company Santos.
  • St George Bank is facing intense competition for top banking talent, with National Australia Bank seeking seasoned professionals for its board and top management positions.
  • The bank will maintain its tier-one capital ratio at the target level of 7-7.5 per cent through the sale of preferred stock, with a total of up to $300 million to be raised in July.
  • Conroy stated that the bank has reviewed its systems for risk management issues similar to those faced by National Australia Bank, finding it useful to go through the APRA and PricewaterhouseCoopers reports "line by line".
  • St George Bank recently reported a 16 per cent increase in profit for the half-year to March 31, with lending volumes rising and the bank having stressed-tested its systems for a possible severe downturn in the housing market.

Statistics:

  • Up to $300 million to be raised from the sale of preferred stock in July to maintain tier-one capital ratio (Conroy, St George Bank).
  • 7-7.5 per cent: target level for St George Bank's tier-one capital ratio (Conroy, St George Bank).
  • $377 million: St George Bank's record profit for the half-year to March 31, a 16 per cent increase (St George Bank).
  • $167 million: amount of capitalised expenses subject to the deduction from St George Bank's regulatory capital at the end of the first half (Conroy, St George Bank).
  • 14 Acent: decline in St George Bank's share price yesterday (The Australian Financial Review).
  • $21.84: St George Bank's closing share price yesterday (The Australian Financial Review).

Sources:

  • "St George Bank's share price falls 14 cents" by Duncan Hughes, The Australian Financial Review, June 23, 2004
  • "St George Bank profits rise 16 per cent" by Duncan Hughes, The Australian Financial Review, June 23, 2004
  • St George Bank, "First Half 2004 Results", June 23, 2004
  • St George Bank, "Shareholder Meeting Presentation", June 23, 2004