Bank reshuffles top managers
By Zhang Fengming |
May 27, 2010, Thursday
|
Print Edition
Print Edition
SHENZHEN Development Bank yesterday announced a major management reshuffle to assure investors and clients of continuity in the Shenzhen-listed lender.
Frank Newman, current chairman and chief executive officer of the bank, is resigning and will stay at the bank as a senior advisor until the end of this year.
The Shenzhen Bank will appoint Richard Jackson, previously the president of Ping An Bank under Ping An Group, as its president, replacing incumbent Xiao Suining who will become chairman of the Shenzhen lender.
"We're now focusing on the bank, making the transaction a success and ensuring the continuity and sustainability of the bank," Jackson said.
Contrary to wide speculation in the market, there is no "concrete plan" to merge the Shenzhen Bank with Ping An Bank, the senior bankers said.
Ping An Group, China's second-largest insurer, brings capital the Shenzhen Bank needs to accelerate its expansion and to raise its capital adequacy ratio to 10 percent, from 8.7 percent at the end of March.
The insurer said it will increase its holding in the Shenzhen Bank to as much as 30 percent by the end of 2010 as it moved to focus on the Chinese market after an ill-fated investment in Fortis.
Moody's Investors Service has raised its rating on the Shenzhen Bank's financial strength outlook to positive from stable after Ping An said it would buy into the medium-sized bank.
The Shenzhen Bank held a media briefing in south China's Shenzhen City yesterday to announce the reshuffle, which also included the resignations of three directors from Newbridge Capital, a unit under TPG Inc, which bought the troubled domestic bank in May 2004.
Newman, who joined the Shenzhen Bank as the first foreigner to head a local commercial bank five years ago, was appointed by Newbridge. He inherited US$1.74 billion in bad loans and a management structure that allowed regional chiefs to extend credit with little oversight.
Under his helm the bank's bad loan ratio fell to 0.63 percent at the end of March from 11.4 percent at the start of 2005. Its capital adequacy ratio, a key measure of financial strength, rose to 8.7 percent from 2.3 percent in the same period.
Frank Newman, current chairman and chief executive officer of the bank, is resigning and will stay at the bank as a senior advisor until the end of this year.
The Shenzhen Bank will appoint Richard Jackson, previously the president of Ping An Bank under Ping An Group, as its president, replacing incumbent Xiao Suining who will become chairman of the Shenzhen lender.
"We're now focusing on the bank, making the transaction a success and ensuring the continuity and sustainability of the bank," Jackson said.
Contrary to wide speculation in the market, there is no "concrete plan" to merge the Shenzhen Bank with Ping An Bank, the senior bankers said.
Ping An Group, China's second-largest insurer, brings capital the Shenzhen Bank needs to accelerate its expansion and to raise its capital adequacy ratio to 10 percent, from 8.7 percent at the end of March.
The insurer said it will increase its holding in the Shenzhen Bank to as much as 30 percent by the end of 2010 as it moved to focus on the Chinese market after an ill-fated investment in Fortis.
Moody's Investors Service has raised its rating on the Shenzhen Bank's financial strength outlook to positive from stable after Ping An said it would buy into the medium-sized bank.
The Shenzhen Bank held a media briefing in south China's Shenzhen City yesterday to announce the reshuffle, which also included the resignations of three directors from Newbridge Capital, a unit under TPG Inc, which bought the troubled domestic bank in May 2004.
Newman, who joined the Shenzhen Bank as the first foreigner to head a local commercial bank five years ago, was appointed by Newbridge. He inherited US$1.74 billion in bad loans and a management structure that allowed regional chiefs to extend credit with little oversight.
Under his helm the bank's bad loan ratio fell to 0.63 percent at the end of March from 11.4 percent at the start of 2005. Its capital adequacy ratio, a key measure of financial strength, rose to 8.7 percent from 2.3 percent in the same period.
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