Gary Hoffman, Chief Executive, Northern Rock

Feb 22 2010 By Andrew Hebden, The Journal

Gary Hoffman took over as chief executive of Northern Rock days before the collapse of Lehman Brothers shook the banking world to its core. In an exclusive interview, he tells Andrew Hebden how he has steered the Newcastle bank back to stability - and the brink of a sale.

In Quotes

Hoffman on leaving Barclays:

"It was a wrench to leave after 27 years. I didn’t want to leave. I was enjoying it. I had done most of the big jobs there and when someone first came to me and said would you like to come and run Northern Rock, I said: ‘Don’t be silly, why would I want to do that when I have a great job here in Barclays?’"

Hoffman on the collapse of Northern Rock:

"No one predicted what happened. I think there is a feature in the industry that those small, very successful building societies that tried to become big, successful banks were always going to find their model and capability challenged when the going got tough. And I would say that Northern Rock alongside Halifax and others were part of that."

Hoffman on the last recession:

"The thing I learnt most was that relationships are the most important thing and that what you do during the difficult times with customers to see them through will live with them forever and live with the banks forever.

"If banks take the umbrella away when it rains, whereas they’re happy to give you the umbrella when the sun is shining, customers never forget it."

Hoffman on modern banking:

"I think the ‘Mr Mannering’ bank never existed. People often say to me that we need to go back to the days when the bank manager knew everyone – but they didn’t really, they just knew the people at the golf club."

Hoffman on banks and sponsorship:

"What you tend to find a lot is the chief executive likes something – be it football, golf or cricket – so you sponsor it. That is completely inappropriate and you have seen that happening at other banks."

Hoffman on straight talking:

"I always remember the phrase, ‘It’s important to read the writing on the wall before your back is against it’ and I think we were very straight with the problems that we had."

Hoffman on dealing with the Government:

"They are the single shareholder whereas I’m used to interaction with many shareholders. The dialogue is inevitably more regular but I propose a strategy through the board of Northern Rock, they agree it and let me get on with it. They don’t interfere."