Blair Vernon

AMP Limited has announced the appointment of Blair Vernon as its new Group Chief Executive Officer (CEO) following a thorough internal and external search process conducted by a top tier executive search firm. Current CEO, Alexis George, will retire from executive roles effective 30 March 2026 after a distinguished career in financial services. Ms George has successfully led AMP since August 2021, guiding the organisation through a period of significant transformation and growth.

Mr Vernon, AMP’s Chief Financial Officer, brings extensive experience from previous financial services leadership roles in Australia and New Zealand. His appointment ensures a seamless transition and ongoing execution of key strategic initiatives.

This leadership change marks a new chapter for AMP, building on the strong foundation established under Ms George’s tenure.AMP Chair Mike Hirst commented: “On behalf of the Board, I thank Alexis for her dedicated service and leadership at AMP. Alexis has guided AMP through a significant transformation that has streamlined the organisation and focused each business on its strongest growth opportunities. She stabilised the business and oversaw the successful sale of AMP Capital and the Advice business whilst building a customer focused culture.

“Alexis has advanced AMP’s transformation and culture and delivered strategic initiatives that will underpin the next phase of growth. In particular, her clear achievement of building a strong executive team will ensure continued momentum in the business and position AMP for future success. I wish Alexis well for the future.

“After a rigorous search and selection process, the Board was unequivocal in its view that Blair brings the right breadth of experience and capability to lead AMP in its next phase of growth as CEO. He is keen to deliver strong performance for our stakeholders and has played a key role in improving our position in the financial services industry.

“Blair has built confidence by tightening financial management, steering our capital return program and successfully executing both the AMP Capital separation and the AMP Advice sale and partnership. The Board congratulates Blair on his appointment and looks forward to working with him and our excellent leadership team to build on the positive momentum within the business.”

Alexis George commented: “AMP has undertaken significant transformation to become a simpler, customer-focused, and growth-oriented organisation. I am proud of our achievements over the past 5 years, particularly helping our customers retire with confidence. While it was not an easy decision to retire from executive roles, I am confident that AMP is well positioned for future success. Leading AMP, a company integral to Australia and New Zealand, has been an honour. I wish Blair and AMP continued success and will remain a strong supporter.”

Blair Vernon commented: “It’s a privilege to take on the leadership of AMP, a company with a proud legacy of serving the financial needs of Australians and New Zealanders. AMP is delivering against its strategy, and I look forward to continuing to work with my colleagues in executing our strategic ambitions and delivering positive outcomes to customers, shareholders, communities and colleagues. I want to thank Alexis for her incredible contribution to AMP and all its stakeholders, and for her support over so many years. I wish her well for the future and look forward to continuing to work with her during our transition.”

A process will also be undertaken to appoint a new Chief Financial Officer.

Blair Vernon biography

Blair has over 30 years’ experience across the financial services sector in New Zealand and Australia.

Blair commenced in the role of AMP Group CFO in July 2023. From May 2022 until July 2023, Blair served as Group Executive Transformation for AMP and Group Executive for the New Zealand business. During this period Blair established the transformation and simplification program, including the divestment of AMP Capital assets. Blair was previously CEO/Managing Director of New Zealand Wealth Management from January 2017, and prior to this served as AMP’s Director Retail Financial Services; Director of Advice & Sales and General Manager Marketing and Distribution.

From August 2020 to January 2021, Blair served as Acting CEO for AMP Australia, where he was responsible for AMP’s wealth management and banking divisions with a focus on strengthening customer-led outcomes.

Summary of new CEO contract:

• Salary (including superannuation) of A$1.4million per annum.
• Short-term incentive opportunity equivalent to 100% of salary for on target performance, and 125% at maximum, subject to achievement of performance hurdles and other terms.
• A maximum long-term incentive opportunity with a target value equivalent to 100% of salary, subject to achievement of performance hurdles and other terms.
• Either party can terminate the agreement with six months’ notice. The Company may summarily terminate the CEO’s employment without notice in certain circumstances.
• There is a post-employment restraint of 12 months.

Summary of Ms Alexis George’s exit arrangements:

• Ms George will stay in the CEO role until 30 March 2026, after which time she will be available to the Company to assist with handover and ongoing support.
• All of Ms George’s incentives will be treated in accordance with her contract and the original offer terms, as previously disclosed.

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Mr Hirst brings extensive experience to the AMP Board, with more than 40 years in board and senior executive leadership roles.

Mr Hirst was the Chief Executive Officer of Bendigo and Adelaide Bank from 2009 to 2018, following senior executive roles within the bank and with Colonial Limited. He is currently a non-executive director of ASX-listed investment company, AMCIL Limited, and private health insurer, GMHBA Limited. He is also Chairman of Butn, a fintech focused on SME business lending.

AMP Chair Debra Hazelton commented:

“Mike is a respected business leader who will bring significant breadth of experience and insight to the AMP Board.

“As the CEO of Bendigo and Adelaide Bank Mike led and grew the business in a highly challenging and competitive environment with a clear focus on people and clients.

“His detailed knowledge of Australia’s retail banking and wealth environment, as well as his broad sector experience as a non-executive director, including innovative fintech start-ups and across Government, will be invaluable.”

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Mike Hirst

The FORTUNE Annual “Change the World” List of Companies That Are Doing Well By Doing Good has been released, with Bendigo and Adelaide Bank ranked the top Australian company.

FORTUNE’s annual list of top 50 companies ranks enterprises that have made an important social or environmental impact through their operations and profit-making strategy with companies recognised for, and competitively ranked on, innovative strategies that positively impact the world.

In the category of Economic Opportunity and Financial Inclusion, FORTUNE has ranked Bendigo and Adelaide Bank at thirteenth globally taking into account the Bank’s measurable social impact, business results and degree of innovation.

This ranking sees Bendigo and Adelaide Bank as the leading Australian company and second in the world for a commercial bank.

Mike Hirst, Managing Director of Bendigo and Adelaide Bank said “Shared Value is a concept now gaining global momentum, although it has been central to our strategy for Bendigo and Adelaide Bank’s entire 160 year history.

“To be recognised among international enterprises committed to strengthening the connection between corporate and community success by addressing social and environmental needs is confirmation that our business model is ahead of its time.

“We are enormously proud of our Community Bank® model, which is the most obvious of our shared value models. The concept of feeding into community prosperity, rather than off it, is fundamental in all we do.

“The model better enables local communities to develop the capability and resources that underpin their own sustainability, growth and resilience through providing funding and helping build commercial skills.

“The performance of the financial system is ultimately only as good as the benefits it delivers to its users whether they be individuals, communities or businesses. We believe that to be truly successful, all stakeholders in our business – customers, staff, shareholders, partners and suppliers – must feel fairly rewarded for the effort they put in to helping our business be successful,” Mr Hirst said.

Bendigo Bank’s Community Bank® model is unlike any other banking model.

Background

The Community Bank® concept was developed as community angst grew when Australia’s major banks reduced their branch presence by about 30 percent in the 1990’s, leaving many regional towns without a local banking presence. This event sowed the seeds for a response to a pressing economic and social need; to retain local capital in the community by restoring a local banking presence.

Bendigo Bank created the Community Bank® model with the genuine belief that all Australians are entitled to receive quality banking services and specialist financial advice, no matter where they live. But what began as an alternative banking model has today become a network of people and communities taking greater control of their financial futures, investing something of themselves to shore up the prosperity and sustainability of the place they call home.

Almost 20 years on, Community Bank® branches have injected more than $165 million in profits, contributing to the social and economic sustainability of more than 316 Australian communities. The model requires partnerships with local people and community enterprises to provide communities with quality banking services, employment opportunities, a local investment option for shareholders, and importantly, a source of revenue for projects determined by local people.

Bendigo and Adelaide Bank provides the banking infrastructure and licensing requirements, while the community runs the branch and generates valuable funds to invest into their community.

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Under the agreement, which is subject to approval of the Court, the Bank’s borrowers who are members of the class actions have admitted that their loans are valid and enforceable and have provided broad releases from future litigation.

The principal and ordinary accrued interest remains payable by borrowers. However, the Bank has agreed to waive unpaid interest relating to overdue amounts, being the interest (additional to ordinary interest) that is payable by borrowers in default, which is accrued and unpaid up to the date the Court approves the settlement.

This waiver will not result in any adjustment to the accounts of the Bank as unpaid interest relating to overdue amounts has not previously been recognised as revenue. Bendigo and Adelaide Bank Managing Director, Mike Hirst, said he was very pleased with the settlement.

“We have always maintained that the Bank’s conduct was at all times appropriate and the Bank is entitled to be repaid its loans to Great Southern borrowers.

“The terms of this agreement endorse this position and we look forward to working with the borrowers as they repay their debts to us,” Mr Hirst said. Borrowers can contact the Bank on 1300 677 885 to discuss the repayment of loans.

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The milestone was almost unimaginable when the Community Bank® model was first launched in 1998, in partnership with the people from the small Victorian wheat farming towns of Rupanyup and Minyip.

Managing Director Mike Hirst said for these communities the Community Bank® model was seen as a way to restore branch banking services to the towns, after the last of the major banks closed down their services.

“Between 1993 and 2000, more than 2050 bank branches closed across Australia representing a 29 per cent reduction in branch numbers,” he said.

“Bendigo Bank recognised the impact of these cuts on communities and decided to create a new franchise banking model which saw the Bank partner with communities and share the revenue generated by the branch.

“This allowed Australian communities to retain revenue generated by their banking business in their local community for the first time and enabled them to reinvest the money into community groups and projects,” Mr Hirst said.

From 2001 to 2011, Community Bank® branches have represented a quarter of all new Australian bank branches (205 of 799) and in 2009/10 Community Bank® branch openings made up more than half of the new bank branches opened that year (22 of the 40 branches).

“Demand from communities remains strong and in the past financial year 20 new Community Bank® branches have opened and there are currently another 32 Community Bank® sites in development, with many more conversations happening with communities Australia wide,” he said.

“But the Community Bank® model is about far more than enhancing a community’s access to banking services, it’s now about securing an alternative source of income so that a community can fund activities or initiatives which make their town or suburb a better place to live.”

In the past 14 years the Community Bank® network’s returns to communities has grown exponentially each year, with $470,000 returned in the first five years, $8.15 million in the first eight and $22.58 million by the end of the first decade of operation.

Today, just four years later, that figure is an astonishing $80 million and with the continued growth and popularity of the Community Bank® model returns should top $100 million by the end of 2013.

Mr Hirst said in a growing number of instances, community funds were being augmented by governments.

“Communities that can demonstrate commitment and buy-in to projects are great partners for government and these dollars add up to new community facilities, improved services, more opportunities for community engagement activities and generally speaking, a more prosperous society.

“Those who support a Community Bank® branch know they are part of something special, a unique banking movement which has evolved into a whole new way of thinking about banking and the role it plays in modern society,” he said.

3 July 2012

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Bendigo and Adelaide Bank Managing Director Mike Hirst said the adjustment aims to find a fair balance for all of the Bank’s key stakeholders.

“When setting interest rates our Bank needs to take into account a wide range of factors and carefully consider its borrowers, depositors, staff, shareholders, partners and the wider community,” Mr Hirst said.

Customers with an average variable home loan of $250,000 will see their repayments decrease by $33 a month (principal and interest home loan over 30 years).

12 June 2012

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Further to this news, Bank of Cyprus Australia is also pleased to announce record-breaking results for 2011. The significant features of the 2011 results show an increase in customer account numbers by 21 per cent. Mr George Tacticos, Managing Director Bank of Cyprus Australia said “Given the difficult economic environment experienced internationally and even domestically, this is sound achievement and one we are most proud of. This reflects our relationship-based banking that is an attractive component of our business model.”

Other key features of the 2011 results include a 15 percent increase in deposits and a net profit after tax up 27 per cent. The 2011 results confirm the sentiment that Bank of Cyprus Australia is a strong, successful and viable bank.

Such significant achievements give reassurance to Bank of Cyprus Australia Limited customers and staff alike that the Bank is ready to propel itself into a new era of strong growth with Australian parent Bendigo and Adelaide Bank Limited. Under the direct leadership of Mr Tacticos, who was at the forefront of this deal, Bank of Cyprus Australia Limited will follow its community-based banking specifically directed towards the Hellenic-Australian population.

“Like us, Bendigo and Adelaide Bank’s staff and vision is driven by how its business can ensure prosperity for all its key stakeholders and inturn strengthen the community. We are proud of this new affiliation, as we both recognise outstanding customer service and a connection to the community beyond just banking, as the fundamental building blocks of our success. We are here to support the community just as it supports us.”

Mr Tacticos continued “It is business as usual for all our 14 branches. Our customers will continue to deal with our people and our branches across Australia. The transition for everyone involved is minimal – we have always been an Australian bank and now we report to an Australian parent.”

In addition to Bendigo and Adelaide Bank Limited sharing the same principles, the financial future for Bank of Cyprus Australia Limited is now secured. Bendigo and Adelaide Bank Limited is a publicly listed company which is owned by more than 82,000 shareholders, with a market capitalisation in excess of 3.5 billion and $55 billion in assets.

Bendigo and Adelaide Bank, Managing Director, Mr Mike Hirst, said he sees good growth opportunities for the Bank.

“A good opportunity lies ahead for the Bank of Cyprus Australia, initially by giving customers access to Bendigo’s broad product offering, but also by supporting the businesses’ growth in a manner that is not constrained by funding or capital,” said Mr Hirst.

Mr Tacticos said “This phase is committed to providing the same level of support to the community through our devised financial services and through our proudly hospitable level of service. Our values remain the same and our doors are always open to all our customers and the community. We extend an open invitation to all.”

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The announcement was made by Bendigo and Adelaide Bank Managing Director, Mike Hirst, following the Bank’s regular pricing committee meeting.

Mr Hirst said the current banking margins are not sustainable and adjustments to interest rates must be made.

“This is not a popular move, we know that, but it is the right thing to do to restore a proper balance between depositors, borrowers, the Bank’s shareholders and our community partners. At current funding cost levels that balance is out,” he said.

Independent assessments by UBS show that banks are making no money on new mortgages written in the current funding environment. Our internal modelling supports this analysis.

“It gives banks no incentive to freely lend to borrowers, as we are not covering the risks we’re taking or investment in operations and people we’re making,” said Mr Hirst.

“Banks are currently subsidising mortgages and if you look at the traditional role of a bank this makes no sense and is unsustainable.

“Banks were formed as a means to share wealth. Banks accept cash from people with surplus money (depositors) and lend to people who lack cash (borrowers), but who can add value to it once obtained by building a house or investing in a business and generating growth in the economy. It is critical that this flow of credit continues.

Mr Hirst said banks have a fundamental choice to make: adjust the pricing on loans or restrict lending. He added the latter option would have significant implications for the economy and would not be the right thing to do at this point in time.

“Our Bank must return to a pricing position which is sustainable. In doing that we must, of course, remain competitive while reflecting our unique value proposition. This approach has always seen us win new business and meet the needs of customers in the communities in which we operate.”

“Our people deliver industry-leading customer service and our Community Bank® network strengthens the communities in which they operate in by reinvesting profits they make (more than $60 million since it was established in 1998).”

Mr Hirst said finding the right rates balance meant all of the Bank’s stakeholders would continue to benefit from the flow of funds in their communities.

“Our staff are playing their part. Many have taken unpaid leave to help reduce costs, the Bank is not hiring new back office staff and we are only supporting initiatives which generate significant benefits for our customers.

“Last year, we also adjusted the margin share with our Community Bank® partners, to ensure the franchise network operates within a balanced and fair pricing model, and our own shareholders have played their part in dealing with the changes wrought by the GFC through periods of reduced dividend payments.

“We therefore think it is important that adjustments are made in our lending rates to equitably balance the position of all stakeholders.”
Mr Hirst said not every customer makes a purchase based on price alone. Many look for service, quality and a business that gives back to the people it serves-not just takes from them.

“Bendigo and Adelaide Bank employs more than 5800 people, we take our role as an employer very seriously and we don’t want to take a short-term view.

“We are committed to taking a 100-year view of our business. We value our people and appreciate the efforts they make to serve our 1.5 million customers and the wider Australian community, so retaining this capacity to effectively serve our customers is important.

“Given the current environment, we have to make difficult choices right across the business, finding the right balance between reducing costs, increasing revenue and playing our role in building communities,” Mr Hirst said.

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S&P’s decision to raise the bank’s long-term rating from BBB+ to A– means the bank is now rated ‘A’ by all three of the world’s leading credit rating agencies.

Moody’s ‘A’ rating predates the merger of Bendigo and Adelaide banks. Fitch upgraded the bank in May 2011. The S&P upgrade has also been applied to BEN’s wholly owned subsidiary Rural Bank, which gains an ‘A–‘ rating with a stable outlook.

In welcoming S&P’s announcement, BEN’s managing director Mike Hirst noted that few banks in the world were being upgraded in the current difficult economic environment.

“That brings added lustre to our achievement, but it sounds a note of caution at the same time.

“We are obviously pleased to deliver on our stated aim to achieve an A rating from all credit agencies, but we are under no illusions about just how tough the economic environment is.

“Maintaining our hard-won position will require continued focus.”

Mr Hirst said BEN had identified two years ago the need to achieve an A rating in order to open up new funding markets.

“Funding is obviously challenging all banks globally, but the upgrade will certainly enable us to access funding otherwise denied to us.

“Importantly, it will also enable us to service supporters who were precluded from banking with us because we were not A rated.

“One thing it will not do, though, is change our fundamental approach to risk and management. Retail funding remains our key focus because of the strong relationships it brings with our customers, partners and communities. Their support and advocacy is a key to our continued success.”

Bendigo and Adelaide Bank has 1.4 million customers and more than $50 billion in assets held by its diversified businesses.

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Managing Director, Mike Hirst, said the decrease followed the Reserve Bank of Australia’s decision earlier in the week to lower the official cash rate by 0.25%.

“Bendigo Bank sets its pricing and fees based upon principles which promote fairness and equity for all stakeholders.

“Our Bank has considered the interests of borrowers, depositors, community partners and shareholders to reach a decision which is well-balanced and extremely competitive,” Mr Hirst said.

“On balance, reducing home loan rates was the right thing to do now given the cost of living pressures borrowers face and our desire to help stimulate economic activity at a community level.

“But the fact is our funding costs have continued to rise, and today’s rate reduction means our Bank will absorb those costs for now, although further deterioration in funding conditions may place upward pressure on lending rates going forward.”

The new rate will apply from Monday, 28 November, 2011.

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