Great Western Hires Banc One Veteran as Consumer Loan Chief

Continuing its drive to be more banklike, Great Western Financial Corp. has named a former Banc One Corp. executive head of consumer lending.

Gary S. Bernard, formerly senior vice president of retail lending at Bank One Arizona, said he has his work cut out for him.

The consumer loan sales at Great Western's branches have been weak, said Mr. Bernard. While the Chatsworth, Calif.-based thrift has been in the home equity business, Mr. Bernard said it has otherwise limited its consumer lending offerings to credit cards.

"There's a customer base of 4 million people who have not been actively marketed for anything other than a Visa card," Mr. Bernard said.

The $44 billion-asset thrift is trying to be less dependent on the volatile and highly competitive mortgage business. By early next year, the company hopes to improve its return on assets to 1% - from a dismal 0.59% at yearend 1995 - and its return on equity to 15% from 10%, said A. William Schenck 3d, executive vice president of retail banking.

Great Western also plans to improve performance through diversification. Since 1989, the thrift has tried to get more of its deposits from checking accounts and has tried to sell more fee-based services.

"I think Great Western is clearly going to become more of a consumer bank," said Thomas O'Donnell, an analyst with Smith Barney Inc. "They have a head start over other thrifts."

Great Western's efforts have accelerated in the past year with the hiring of Mr. Schenck and five other key executives, including his former PNC Bank Corp. colleague Dean W. Hatton, who was brought aboard in January to develop telephone banking. Like Mr. Schenck, Mr. Hatton, and Mr. Bernard, the other three new hires have had experience at major commercial banks. Mr. Schenck said the company is still looking for an executive to head small business lending.

Mr. Bernard, 42, said he believes there is a lot of opportunity to expand the loan business at Great Western's 416 branches.

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