NAB unveils organisational, leadership changes
Three top executives will leave as NAB shakes up the bank’s organisation and leadership to focus on Australia, NZ.
National Australia Bank AB has unveiled sweeping changes to its structure and executive team to focus on its core Australian and New Zealand operations following the demerger of the troubled Clydesdale Bank and majority sale of its life insurance arm.
Three executives will be leaving the bank (NAB): group executive for enterprise services and transformation Renee Roberts, group executive for personal banking Gavin Slater, and group executive for governance and reputation, Michaela Healey, who NAB said had flagged her plans to retire.
“With the sale of 80 per cent of the life insurance business to Nippon Life nearing completion and other major legacy issues dealt with, we have the opportunity to look to the future and the structure and the leaders to drive the next stage of change,” the bank’s chief executive Andrew Thorburn said, while celebrating the work of the outgoing executives.
“We have made a lot of progress in our core business, but another step change is now needed.”
The business banking division will become business and private banking, headed by Angela Mentis, with a focus on SMEs. The enlarged operation includes the nabBusiness franchise as well as Private Banking and JB Were.
The corporate and institutional banking division will now incorporate the fixed income and capital financing divisions, with Cathryn Carver as its acting head while an executive search is undertaken. The unit also includes asset servicing and NAB’s international branches.
The personal banking and wealth management divisions will join to become consumer banking and wealth management, headed by Andrew Hagger, who will oversee the near-complete sale of the life insurance business to Nippon Life. The division includes NAB’s online offshoot UBank.
The Nippon Life deal is due for completion before the end of the year after a $2.4 billion agreement was reached last October.
Antony Cahill will head the customer products and services division, Bob Melrose will be the acting head of the technology and operations arm and chief risk officer David Gall will continue to head the risk operations, which now incorporates the legal and governance arms.
NAB said three divisions will be largely unchanged: finance, people and Bank of New Zealand, led by Gary Lennon, Lorraine Murphy and Anthony Healy, respectively.
NAB shares dipped half a per cent on the developments, marginally outpacing 0.2 per cent falls in both its rivals’ shares and the broader market.
“These changes will bring greater momentum and energy to NAB’s goal of creating a simpler, more customer-focused organisation that delivers better outcomes for customers as well as shareholder returns,” Mr Thorburn said.
“We have had a very clear plan over the last two years and have taken the action required to execute that plan.
“We have made progress, our customers are noticing the positive changes and our staff engagement score is the highest it has ever been, but we need to do better.”
The changes are subject to regulatory approval and will be in effect from August 1.
At 11am (AEST), NAB shares were off 0.53 per cent at $26.10.
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