Frazis was an unconventional govt who polarised opinion. In response to those that have labored with him, each at BOQ and in his earlier function working Westpac’s retail financial institution, Frazis labored with an interior sanctum of favoured executives who reciprocated with unwavering loyalty.
Seemingly the board had been ready to indulge Frazis’ eccentricities as a result of his quest to gentle a hearth underneath the financial institution’s development technique had proven indicators of waking the sleepy regional financial institution and dragging its IT into the fashionable period.
Simply how unconventional Frazis could be is illustrated by the legendary story (carried within the New Zealand Herald on the time) that whereas working the NZ subsidiary of Westpac in 2010, Frazis eliminated his shirt whereas dancing at its Christmas social gathering to disclose a big crimson “W” painted on his chest.
Studying between the traces of BOQ’s assertion, there was divergent technique – across the velocity of development and the necessity for fortification to take care of an setting that’s changing into riskier for all banks.
At Westpac, Frazis was thought of a quantity junkie in his quest to extend the variety of mortgages written and had been colloquially known as the “low cost king”, referring to the sharp pricing he provided to draw prospects.
BOQ appears to be specializing in resilience and consolidation quite than aggressive development as a part of a shifting of priorities. This, the financial institution says, requires a special set of chief govt abilities.
However Allaway insists this could not have come as a bolt from the blue for Frazis who was advised of the board’s determination in a gathering on Sunday with the chairman. Allaway stated they spoke each day, had a clear relationship, and that Frazis was given clear expectations.
The chairman was additionally very clear that “Frazis was not dismissed for trigger” and “it’s all about what’s greatest for the financial institution”.
However Allaway is adamant that the financial institution’s present monetary place is ok – its capital and liquidity is robust.
This implies that Frazis was not ready to go together with the board’s new and extra conservative method to development or that he wasn’t on condition that selection.
If the board thought there was a time bomb buried in BOQ accounts – issues with the combination of ME Financial institution that hadn’t but surfaced or downside loans not but captured in delinquency statistics – it wasn’t letting on.
Shareholders have been clearly unimpressed by the board determination and marked the inventory down greater than 5 per cent on the information.
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