Bank of Cyprus CEO to step down after overhaul

NICOSIA: Bank of Cyprus CEO John Patrick Hourican announced he will step down in the summer less than two years into a major restructuring of the island’s troubled largest lender.

The former Royal Bank of Scotland senior executive — who joined BoC in October 2013 — is stepping down for personal reasons but is contractually obliged to stay on for another four months, a BoC statement said.

“Hourican’s decision to leave the bank is a personal one and he intends to return to Ireland to spend more time with his young family. “He indicated that he is not leaving to take up another role elsewhere,” it added.

Hourican’s resignation comes two months after a bank service car was torched outside his Nicosia home.

Police said they regarded the motive as “malicious” but have made no arrests.

BoC customers suffered a 47.5 percent haircut on deposits above 100,000 euros under the terms of a 10-billion-euro ($13 billion) bailout deal the government reached with international creditors in March 2013. It was the first such haircut in the eurozone.

Hundreds of Cypriots who had invested in bank bonds were also left out of pocket.

BoC has since undergone major restructuring under Hourican’s management, which has included a 1 billion euro recapitalization and the sale of overseas assets.

The bank has also absorbed the good assets of the former Laiki Bank, the island’s second lender which was forced to close.

The bank said “a successor to Mr. Hourican will be announced in due course” but there is no obvious frontrunner.

In a statement to staff, Mr.Hourican said: “I have been very proud to be part of the Bank of Cyprus family during this period and to have led this chapter in the Bank’s rehabilitation.

“It has been an honor to work with so many talented people and to play my part in laying the foundations for a better bank to serve the Cypriot economy into the future.”

BoC said that before he departs Hourican will have spent nearly two years leading the bank during an “extraordinarily difficult chapter in its history.”

“Today the bank is much better positioned to serve its customers, to offer opportunity to its employees and to create returns for its shareholders. The bank has a clear strategy.”