Monday, Dutch financial giant ING Groep NV (ING) named Patrick Flynn, currently Chief Financial Officer of HSBC Holdings Plc's (HBC, HSBA.L) global insurance business, as its new CFO, succeeding John Hele who, as announced in October 2008, will leave ING and relocate to the United States for family reasons.
Subject to approval by the Dutch Central Bank, or DNB, Flynn will be the new CFO after his nomination by ING's Supervisory Board to the Executive Board at the Annual General Meeting of shareholders on April 27, 2009.
Flynn, who is currently based in London, has served previously as CFO for HSBC's banking and insurance operations in South America from 2002 to 2006. He joined HSBC in 1989, and since then held variety of roles in auditing, treasury, and finance and control. In 1995, Flynn was Senior Manager of HSBC Group Finance, while in 1998, he joined the finance department of the Group Treasury before becoming Head of International Finance Control in 1999.
Flynn, a Chartered Accountant and a Member of the Association of Corporate Treasurers, started his career at the auditing firm KPMG.
Commenting on the appointment, Jan Hommen, Chairman of the Supervisory board and CEO-designate said, "I am extremely pleased that such a highly qualified professional as Patrick Flynn will join ING in the important position of CFO. With his experience in a broad number of roles in both banking and insurance, I am confident that Patrick will play a valuable role for ING in the coming years."
Meanwhile, current ING CFO Hele will become CFO of insurer Arch Capital Group Ltd. (ACGL) as of April 1, 2009. Until the end of March, John Hele will complete the annual accounts and filings for the financial year 2008 and will work with Flynn on the transition of duties, the company noted.
On January 26, ING named Jan Hommen, then Chairman of the Supervisory Board, as its new Chief Executive Officer, succeeding Michel Tilmant, who stepped down from the Executive Board, citing the extraordinary developments over the past few months and his personal condition. The Supervisory Board also decided to appoint Peter Elverding as successor of Hommen as Chairman. All new appointments would be subject to their appointments as members of the Executive Board by the April 27-annual General Meeting. Till then, Eric Boyer, member of the Executive Board since 2004, is acting-CEO.
The new CEO and CFO-designates of ING would be taking charge at a challenging time for the company. In its December ended fourth-quarter, the company recorded a loss of 3.71 billion euros or 1.82 euros per share compared to a net profit of 2.48 billion euros or 1.18 euros per share a year ago, hurt by higher one-time losses as well as impairments and fair value changes caused by extreme market volatility and sharp declines in asset prices.
ING also plans 7,000 job cuts from its total 125,000 workforce, of which about 4,200 full-time reductions would be in the Insurance division and the remaining about 2,800 in the Banking division. The company said it would reduce expenses this year by 1 billion euros to align cost base to the current operating environment. ING also said it sought and received an Illiquid Assets Back-up Facility from the Dutch State on 80% of its portfolio of Alt-A mortgage-backed securities.
The company also had said recently that it would review its portfolio of businesses that may lead to focusing fewer businesses and markets.
ING closed Friday's regular trading session $5.20, down $0.69, on a volume of 3.5 million shares. In the past 52 weeks, the shares traded in $4.92 - $40.67.
For comments and feedback: editorial@rttnews.com