BOSTON - June 17, 2003--Paul F. Hogan, chief risk officer of FleetBoston Financial, announced today that he will retire from the corporation on September 30, 2003. The Board of Directors today approved Fleet's recommendation to name Kenneth J. Sax senior vice president and chief risk officer. Sax currently serves as chief credit officer.
"Under Paul's leadership, Fleet has made major strides in risk reduction in line with our strategic objective to lower our overall risk profile. It is thanks mostly to Paul and his team that we have made visible, meaningful progress on many fronts," said Chad Gifford, chairman and chief executive officer of FleetBoston Financial. "The policies and procedures that Paul and his team introduced or changed have led to a $35 billion or 20 percent drop in corporate credit exposures, especially to troubled industries and large credits. We've also seen a 23 percent drop in nonperforming assets since the peak in the second quarter of last year, and inflows into NPA's are at their lowest level since the third quarter of 2001. Internal credit measures and indicators remain encouraging, and we would expect problem asset levels to continue to decline," he continued. "While I'm pleased because I know it has been a longstanding wish of Paul's to retire and spend more time with his family and outside interests, I will truly miss the expertise and guidance of this longtime friend and colleague of 29 years."
Succeeding Hogan as chief risk officer, Kenneth J. Sax will be responsible for managing the corporation's credit and market risk, managed assets, risk review, portfolio management, and audit units. He joined Fleet predecessor BankBoston in 1998 following 15 years with the Office of the Comptroller of the Currency, where he was an examiner with a focus on multinational banking. Most recently, Sax served as director of Operational Assurance, responsible for the Corporate Compliance, Internal Audit, and Operating Risk Management groups.
"Ken is a highly valued member of our risk management team and is well suited to continue Paul's successful risk reduction strategies. While there's still a fair amount of uncertainty in this economy and credit conditions remain a challenge, I think the trends are encouraging and I'm confident that Ken and the team will continue to make progress toward improving the credit quality of this company," said Gifford.
Sax received both his B.A. and M.B.A. from the University of Memphis in Memphis, Tennessee. He is a member of the Institute of Internal Auditors and The Risk Management Association.
FleetBoston Financial is the seventh-largest financial holding company in the United States, with assets of $200 billion. The company's principal businesses, Personal Financial Services and Commercial Financial Services, offer a comprehensive array of innovative financial solutions to 20 million customers. Through its Personal Financial Services franchise, Fleet offers retail banking, wealth management and investment services, nationwide brokerage, credit card and consumer lending services. These services are available through approximately 1,500 branches and more than 3,500 ATMs in the Northeast; through Fleet HomeLink(SM) online banking, one of the nation's leading online banking platforms; and through telephone banking. Fleet is the leading small business services and commercial banking provider in the Northeast. Fleet's Commercial Financial Services division provides commercial lending, syndications, capital raising and advisory, leasing, cash management, asset-based finance, foreign exchange and interest rate derivatives to clients. FleetBoston Financial is headquartered in Boston and listed on the New York Stock Exchange and the Boston Stock Exchange.
