It follows a rebuke from chairman Patrick Alloway earlier this year over the hiring of an executive with whom he had a close friendship, which was allegedly not disclosed.

The AFR reported that Alloway was disappointed about Frazis’ extravagant expenses, particularly for issues like offsite management meetings.

There was also the issue of his management style and the departure of several key executives.

Frazis was expected to shake the regional banker when he took over following his time at St George and Westpac NZ, but the company’s share price is now significantly lower than in 2019. It fell another 6 per cent this morning after the bank confirmed Frazis’ departure.

Frazis did, however, steer the bank through the takeover of ME Bank and its IT transformation and Alloway said in a statement this morning that Frazis had overseen the return of growth in all key channels.

“However, the board has formed a view that different leadership is required to ensure BOQ can continue to build a stronger and more resilient bank through future cycles,” Alloway said.

“We thank George for his significant contribution to BOQ over the past three years.”

Alloway said he would become executive chairman while a search for a replacement is carried out. Karen Penrose would become the lead independent director over the recruitment period.

Alloway said the focus for the bank would be on strengthening its asset quality.

“Heading into a more challenging economic cycle, the bank will prioritise further strengthening of our financial and operations resilience,” Alloway said.

There would also be a sharpened focus on simplification, productivity, disciplined execution and optimising returns.