By Richard Braddell
MELBOURNE - The Bank of New Zealand's owner, National Australia Bank, yesterday confirmed the appointment of Frank Cicutto to succeed Don Argus, the group's managing director since 1990.
A forthright figure in Australian banking, Mr Argus was instrumental in a chain of bank acquisitions in the British Isles, New
Zealand and the United States.
The 51 per cent of its assets outside Australia now produce 55 per cent of its operating revenue.
Mr Argus said the move overseas was prompted by the perception that the Australian banking scene was overcrowded at a time when it was under pressure from global competition and the need for more efficiency.
One of the disappointments of his 44-year career with NAB was that he was unable to bring about a merger with another large Australian player.
But, while the Australian Government's four-pillars policy banning big bank mergers was an obstacle, the greatest difficulty had been one of aligning "value, price and opportunity."
During Mr Argus' term, which ends on June 1, NAB's net profit has climbed from $A756 million to $A2.5 billion, while its return on equity has grown from 12.7 to 19.2 per cent. It has a $A44 billion market capitalisation and is one of the world's top 50 banks.
Mr Cicutto, who has been with NAB for 30 years, is regarded as a safe set of hands for the succession.
But while Mr Cicutto professed comfort with that description, he emphasised the industry was set for unprecedented change.
While unable to define precisely these changes, he believes the Internet and other technology would see a convergence well beyond the blurring of banking and insurance to sectors like retailing and communications.
