NAB’s Andrew Irvine to replace business bank boss with Canadian connection

The banking major is staring down competition from Westpac and CBA, which are vying for its top spot in business banking, where the profits are richer than home loans.

NAB chairman Philip Chronican with CEO Andrew Irvine. Picture: Con Chronis/AAP Image

National Australia Bank will replace its business banking boss with another Canadian import as rival Westpac poaches its chief financial officer, prompting a downgrade of the market’s number one business bank.

NAB revealed on Monday its business and private banking boss Rachel Slade was out of her job less than a year after taking charge of NAB’s most important division.

CEO Andrew Irvine has picked a former Bank of Montreal colleague, Andrew Auerbach, to succeed Ms Slade. She will leave the bank on July 1, with JBWere CEO Michael Saadie in charge of business lending in the interim.

Banking industry sources speculated Ms Slade could be a contender for other vacancies in the sector, amid expectations ANZ CEO-designate Nuno Matos will make several changes upon his arrival.

NAB and Westpac turned over their CEOs last year, and ANZ set a succession plan in motion to replace outgoing boss Shayne Elliott from July. The only big four bank with stability at the top is Commonwealth Bank, run by Matt Comyn for the past seven years.

Ms Slade had been a contender for NAB’s top job to replace veteran banker Ross McEwan, before Mr Irvine secured the CEO’s office in April last year.

Mr Auerbach joins as NAB is struggling to fend off rivals Westpac and Commonwealth Bank which are making inroads into NAB’s market-leading position.

Its market share has slid by 67 basis points, or 0.67 of a percentage point, over the past 12 months.

Broker Jarden slashed its outlook for NAB, warning the departure of its CFO, who only took on the job in 2023, was a bad portent.

NAB executive Rachel Slade will leave the bank on July 1. Picture: Supplied

Mr Auerbach will start at NAB on June 16, pending regulatory approvals and securing a work permit.

He will step aside from Delisle Advisory Group, a Toronto-based wealth business he co-founded and runs, to take on the NAB role, saying the decision had been “hard” but “really compelling”.

“The people and culture at NAB is exceptional, and I am excited to be reporting to Andrew Irvine, CEO of NAB with whom I worked at BMO,” Mr Auerbach said.

Both Mr Irvine and Mr Auerbach are veterans of the Bank of Montreal, with a 12-year crossover between the two men at the Canadian lender.

Mr Irvine said Mr Auerbach would be a “a tremendous addition to the NAB team”, noting the need to “drive performance in a competitive environment”.

“In particular, he brings a strong track record of improving both customer experiences and financial performance,” Mr Irvine said.

NAB CFO Nathan Goonan will also leave the bank later this year after rival Westpac poached the executive in a similar role. He will be replaced in the interim by Shaun Dooley, NAB’s current group chief risk officer.

Mr Dooley will in turn be replaced by Peter Whitelaw, current NAB chief resilience risk officer.

Mr Irvine said NAB had “great talent and leadership across the bank”, which would ensure “we will maintain momentum while we embed these changes”.

Mr Goonan replaces outgoing Westpac chief financial officer Michael Rowland.

Westpac CEO Anthony Miller said Mr Goonan would bring his extensive financial experience to the bank.

“I’m delighted to appoint someone of Nathan’s calibre to this role.,” he said.

“His breadth of knowledge across many areas, coupled with his deep expertise in finance, makes him an ideal fit.”

NAB's new group executive for business and private banking, Andrew Auerbach.

Jarden analyst Matthew Wilson reduced NAB shares from an overweight recommendation down to underweight.

Mr Wilson questioned the move by Mr Goonan to Westpac, noting it was “not customary for CFOs to switch banks in the same role [and] therefore raises questions for us”.

Mr Wilson said NAB had “clearly lost its mojo in business banking” noting the move to appoint Mr Auerbach to replace Ms Slade was “not that surprising”.

Jarden notes NAB has dominated business banking for 35 years, but has more recently “struggled to ‘grow its own timber’ in this division”.

“Where have the quality [business banking] executives gone? Could this also speak to perhaps potentially deeper issues in the culture and operations of the business bank,” Mr Wilson wrote.

The business banking scene has grown increasingly competitive amid a slump in margins in home lending.

NAB reported a $267m impairment charge last month in its December quarter earnings, with much of which was driven by its Australian business lending and retail operations.

But on Monday, S&P Market Intelligence said Australia’s banks were positioned to return to pre-pandemic levels of troubled debts in the coming year amid resilient household and business spending.

S&P Global Ratings analyst Nico de Lange said bank credit losses “should remain low over the next two years”.

“We believe that relatively low unemployment, modest economic growth and a change in spending patterns will shield borrowers against a high interest burden,” he said.

Shares in NAB slid 0.48 per cent on Monday, amid a broader rally in the banking sector, falling 16c to close at $33.14.

NAB shares have erased much of their gains over the last year, and are down almost 19.4 per cent or $8 from their February peak.