Bank of Queensland will become Australia’s sixth-largest bank following its $1.3 billion merger with ME Bank. Bigger is not necessarily better unless CEO George Frazis can fix long-standing problems in both banks.
When Bank of Queensland chief executive George Frazis decided to replicate Westpac’s multi-brand strategy with the $1.3 billion purchase of ME Bank, he also took on the formidable task of dealing with the worst operational aspects of both banks.
ME Bank is not a basket case, but the fact that Frazis reckons he can slash about 30 per cent of its cost base, or up to $80 million a year, tells you that the bank’s “socially driven purpose” has not included efficiency.
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Tony Boyd is the former Chanticleer columnist. He has more than 35 years' experience as a finance journalist. Connect with Tony on Twitter. Email Tony at tony.boyd@afr.com
