Outgoing RBS boss McEwan takes another tough assignment
Scandal-hit NAB is to get Ross McEwan's services once he is able to leave his current role at a bank with its own tainted past.
Friday 19 July 2019 10:16, UK
The chief executive of Royal Bank of Scotland (RBS) Ross McEwan is to take the reins at another struggling bank when he leaves the role.
It was announced overnight that the New Zealander, credited with progressing the UK bank's turnaround substantially following its bailout at the height of the financial crash, was to join scandal-hit National Australia Bank (NAB).
Mr McEwan, who joined RBS in 2013, confirmed in April he was to step down within a year once a successor was identified and in place.
NAB - like RBS - is no stranger to controversy over the way it has treated customers in the past.
A Royal Commission inquiry into Australia's financial sector, which criticised the whole industry for a culture of greed, hit NAB the hardest of the "big four" lenders in the country.
Its chief executive Andrew Thorburn and chairman Keith Henry quit in February after a shareholder backlash amid accusations they failed to take responsibility for the findings.
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A key line of questioning during the hearings concerned allegations of fees-for-no-service at the bank and NAB could yet face criminal prosecution for its wider conduct.
The inquiry recommended that 24 cases of potential misconduct be considered, though it stopped short of identifying the banks said to be involved.
NAB is among lenders compensating customers who were poorly treated.
Its shares were more than 2% up on Friday following confirmation of the appointment of Mr McEwan, who is no stranger to the Australian banking sector following previous roles at Commonwealth Bank of Australia.
He will be seen as a pair of experienced hands when it comes to rebuilding a bank and its reputation.
While RBS remains 62%-owned by the UK taxpayer, he returned it to annual profit and restored dividends to shareholders for the first time in a decade.
However, his tenure was mired by a continuing row over the treatment of troubled business borrowers by the RBS unit known as the Global Restructuring Group.
RBS chairman, Sir Howard Davies, confirmed a successor to Mr McEwan was yet to be appointed.
He said: "We note today's announcement that Ross will take over as CEO of National Australia Bank and congratulate him on this appointment.
"The search for a successor remains ongoing and the effective date of Ross' departure will be confirmed in due course."
Mr McEwan told reporters that taking the role was a "privilege" and he planned to "protect and accelerate" NAB's transformation of its operations and culture.
That was seen by analysts as a signal that the bank's plan to cut costs and thousands of jobs in the process could go deeper under his leadership.
Credit Suisse analysts told clients in a note: "The risk is that Mr McEwan rebases more than what the market expects".