National Australia’s revamp spawns top managers’ exit

epa04999535 An image Ddated 23 October 2015 and made available 28 October 2015 showing National Australia Bank (NAB) signage in Sydney, Australia. Japan's Nippon Life Insurance said 28 October 2015 it had struck a deal to purchase National Australia Bank's insurance business for around 2.4 billion Australian dollars (1.7 billion US dollars) to expand its business overseas. The move represents the latest acquisition abroad by a najor Japanese company to counter a shrinking market at home. Nippon Life will buy an 80-per-cent stake in MLC, a subsidiary of National Australia Bank, with the bank retaining the rest, the major Japanese insurer said in a statement. EPA/JOEL CARRETT AUSTRALIA AND NEW ZEALAND OUT

 

Bloomberg

Two of National Australia Bank Ltd’s top managers will leave the firm as the lender overhauls its leadership team and business structure, after exiting underperforming units.
Gavin Slater, who has been on the lender’s executive committee since 2009 and led the personal banking unit for more than three years, will depart along with Renee Roberts, who oversaw enterprise services and business transformation, the Melbourne-based bank said.
Michaela Healey, head of governance and reputation, will retire, it said.
“The time was right to refresh the executive leadership team after two years during which the team had worked to address major legacy issues and re-focus the bank on the core Australian and New Zealand businesses,” CEO Andrew Thorburn, who has been at the helm since August 2014, said in the statement. “We have made a lot of progress in our core business, but another step change is now needed.”

Returns Focus
The latest changes will allow the lender, one of Australia’s four largest, to better integrate its banking and wealth businesses, and offer a stronger corporate and institutional banking service to customers, it said in the statement. Thorburn is focusing on lifting National Australia’s return on equity, which has lagged its domestic peers for more than a decade.
He has exited the U.K. unit and is in the process of selling a majority of its life insurance business to Nippon Life Insurance Co.
As part of the overhaul, the business banking unit will include private banking and will be led by Angela Mentis. A new corporate and institutional banking unit will be formed, while personal banking will include the wealth management business and will be headed by Andrew Hagger, the lender said. The changes will become effective Aug. 1, it said.
This is Thorburn’s second major restructure of the leadership ranks, with the first one announced on the day he took over as CEO.
National Australia’s shares have dropped 10 percent this year, the worst performer among the four-largest Australian lenders.

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