Rabobank CEO drops reins early

Otago Daily Times - - MARKETPLACE - SO­PHIE BOOT

AUCK­LAND: Rabobank New Zealand chief ex­ec­u­tive Daryl John­son has re­signed, less than two years af­ter tak­ing over the reins of the ru­ral lend­ing spe­cial­ist.

John­son’s res­ig­na­tion will take ef­fect on De­cem­ber 22, and Rabobank NZ has started a process to ap­point a new chief ex­ec­u­tive of­fi­cer, chair­man Henry van der Hey­den said in a state­ment to the NZX. Mr John­son joined the bank in July last year, hav­ing pre­vi­ously led Na­tional Aus­tralia Bank’s Asia busi­ness.

In March, the ru­ral lend­ing spe­cial­ist posted a 14% de­cline in an­nual profit to $89.5 mil­lion last year. The de­cline in profit was largely due to the bank book­ing $15.1 mil­lion in im­pair­ment charges on bad debt.

At the time, Mr John­son said the pro­vi­sion­ing was pru­dent given dairy con­di­tions.

New Zealand lenders have been strug­gling to at­tract de­pos­i­tors over the past year as record low in­ter­est rates re­duce the ap­peal of term de­posits, mean­ing banks have been forced to use more ex­pen­sive whole­sale fund­ing lines over­seas. Rabobank in­creased de­posits 8.5% to $4.14 bil­lion through 2016.

The bank is owned by Nether­lands­based Rabobank Ned­er­land. — Busi­nessDesk

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