Chairman of NatWest Howard Davies said on Tuesday he would leave the British bank which holds a 16.6 per cent stake in Permanent TSB, paving the way for a leadership revamp at the lender still about 40 per cent owned by the UK taxpayer.
At NatWest’s annual investor meeting in Edinburgh, banking veteran Davies said it was an appropriate time to start a search for his successor, as he approaches nine years as chairman — the recommended limit under UK corporate governance rules.
The economist, who has steered the former Royal Bank of Scotland through a sweeping restructuring and return to profitability, said he expected a handover to take place to his successor by July 2024.
The search — which will begin in the coming months — comes after a period of heightened volatility in the wider banking sector, including the collapse of US tech lender Silicon Valley Bank and the emergency rescue of Credit Suisse.
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Davies said “poor risk management” and long-standing challenges were largely behind the failures, adding that in contrast NatWest was robust and resilient.
Davies has been a key figure in the City of London for four decades, having previously held roles including chairman of regulator the Financial Services Authority and deputy governor of the Bank of England.
In the 1980s he was a special adviser to Britain’s then-chancellor of the exchequer Nigel Lawson, and he later became director of the London School of Economics.
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During his tenure, NatWest has undergone a multiyear overhaul and deep cost-cutting. He presided over its return to majority private ownership in March 2022 following its £45 billion (€53.85 billion) bailout during the 2008 financial crisis.
NatWest also became one of few major British companies with women in its top two executive positions, with Alison Rose as chief executive and Katie Murray serving as chief financial officer.
But his time at the bank has not passed without controversy. NatWest became the first bank to be hit with a criminal money laundering fine in 2021, while the lender has also faced criticism for past mistreatment of struggling small companies.
Davies told reporters after the event that while NatWest's share price was down about a fifth over his tenure, he believed the bank was in radically different shape.
“Whereas I had my arm twisted to be chairman of this bank, I don’t think we’re going to find that problem in finding my successor,” he said. — Reuters
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