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ME Bank chief resigns

ME Bank chief executive Jamie McPhee has resigned after weathering scrutiny over the bank's adjusting of redraw facilities for mortgage customers and its relationship with the industry funds that own it.

McPhee, who has been chief executive for 10 years, said he felt it was time to hand over the position to someone else.

An appointment has not yet been announced, with the board commencing a search for the new chief executive.

"In deciding to call time, I know the bank is in a strong position financially and is well placed for the future, but that the industry challenges ahead and resulting need for change, will require a long-term commitment," McPhee said.

"After 10 and a half years as chief executive, I believe now is the best time to hand over the reins to give ownership of the bank's post-COVID strategy development and long-term execution to a new chief executive."

His resignation will be effective from the end of July, at McPhee's request. The board has approved this.

ME Bank chief financial officer Adam Crane will take on the role of acting chief executive while the search for a permanent replacement is undertaken.

"Jamie has made a significant contribution to the Bank over the last ten and a half years, transforming the scale and extent of ME's retail offering to customers," ME Bank chair James Evans said. "ME has increased significantly in size and relevance, growing its customer numbers from 234,000 to 542,000, and its assets by 50% to almost $30 billion. Notably, ME has continued to achieve primacy in customer satisfaction, based on Roy Morgan banking research."

At the start of June, McPhee appeared before the Standing Committee on Economics where he faced tough questioning from Liberal MP Tim Wilson over the bank's handling of the adjustment of redraw balances for some mortgage customers.

Earlier in the year, Wilson also questioned McPhee of ME Bank's relationship with the 26 industry super funds that own the bank. It was confirmed the ME Bank does not pay dividends to the funds that own it.

Read more: James McPheeAdam CraneJames EvansLiberal MP Tim WilsonMcPhee of ME Bank
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