Kiwibank chief executive Sam Knowles has been mulling his resignation from the New Zealand-owned bank for some months.Rumblings from the government about a possible sale of the bank had nothing to do with the timing of his departure, he said at a midday m
Kiwibank chief executive Sam Knowles has been mulling his resignation from the New Zealand-owned bank for some months.
Rumblings from the government about a possible sale of the bank had nothing to do with the timing of his departure, he said at a midday media conference.
“The reason I’m leaving Kiwibank is because it’s the right time to leave. We’ve just come through the recession and been tested and I’m pleased to say we have the best outcome of many of the banks in terms of credit.
"I'm in good health and I haven't had a job offer from across the ditch," he said.
“It’s the natural point in the evolution of Kiwibank for me to stand back and let someone else take over.”
No date has been set for his departure and Mr Knowles will stay at the New Zealand-owned bank he helped establish in 2002 until a replacement is found.
Speculation
Speculation Kiwibank could top the list of candidates for any SOE sales has followed comments from Finance Minister Bill English in his post-Budget speech last Friday.
Mr English said Kiwibank had reached a size where it needed either a government guarantee or "an awful lot of capital” and suggested there would be strong demand for shares in it.
Kiwibank raised $150 million through a preference share issue on the NZX in March.
Mr Knowles said the Kiwibank board had recently submitted its 10-year plans and capital requirements to the Government.
The bank needed $100 million meet its goals – an amount that would require the Crown to sacrificing some dividend payments, he said.
Kiwibank chairman Jim Bolger said the bank was seeking commitment from the Government to support the bank’s growth and it was perfectly reasonable for the bank to be having commercial conversation with its shareholder about whether they wanted their dividends reinvested for growth.
“We’ve just raised $150 million of capital and we can raise more so we don’t have a capital need today but to grow we need to ensure shareholders are committed.”
Resignation not a surprise
Mr Bolger said Mr Knowles' resignation was not a surprise to the board that has been working through the details of his departure over the last few months.
No date has been set for his departure and Mr Knowles will stay at the bank he helped establish in 2002 until a replacement is found.
With no firm plans about next steps for his career, he said he simply wanted a new challenge.
He is a director or trustee of a number of organisations including Trust Power, Te Omanga Hospice and St James Theatre Trust.
The search for his replacement will start immediately and Mr Bolger said he was expecting strong interest from inside and outside the bank.
“We will be inundated with applicants, quite frankly.”
Mr Bolger said he doubted Mr Knowles’ successor would be an Australian.
“I think that would be extraordinarily difficult given the drive Kiwibank has, for it to have anything other than a Kiwi leader.
Mr Bolger said he would not be seeking another term as chair when his term expires at the end of the year.
He expected to be succeeded by NZ Post’s deputy chairman and former deputy Prime Minister Dr Michael Cullen.
“It was made pretty clear to the market Dr Cullen would take over as chair when he was appointed to New Zealand Post,” Mr Bolger said.
