Clyne to oversee revamp

NATIONAL Australia Bank boss Cameron Clyne will personally oversee the restructure of the bank's under-pressure British arm after its long-serving European chairman, Malcolm Williamson, outlined plans to step down from next month.

By InvestSMART · 29 May 2012

By InvestSMART ·
29 May 2012

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Mr Clyne will step into the role of chairman of Clydesdale Bank and NAB Group Europe on the retirement of Sir Malcolm.

The UK board shake-up comes just weeks after NAB outlined plans to slash jobs and close dozens of branches to stem losses as the British bank battles a worsening economic outlook.

The overhaul of NAB's underperforming business will cost NAB $710 million in restructuring charges and provisions over the next year as its Clydesdale Bank stages a retreat to its heartland markets in Scotland and northern England.

Still, the loss of the well-connected Sir Malcolm, who has headed the UK board since 2006, is a blow to NAB.

The career banker previously held chief executive roles of credit card provider Visa International and during the 1990s headed the Asia-focused Standard Chartered Bank.

As well as retiring from Clydesdale Bank, Sir Malcolm will step down from National Australia Group Europe, the broader banking group that takes in institutional lending and markets.

At the weekend, NAB announced that four UK-based finance experts would also join the board of Clydesdale Bank.

The changes were part of board renewal, NAB said.

The appointments include David Allvey, the former finance director of Barclays, and Barbara Ridpath, the former European boss of the ratings agency Standard & Poor's.

NAB's UK business posted a $36 million loss in the first half, with margins and revenue down.

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Frequently Asked Questions about this Article…

What changes is National Australia Bank (NAB) making to its UK operations and why?

NAB is overhauling its underperforming UK arm, Clydesdale Bank, to stem losses. The bank has announced plans to slash jobs, close dozens of branches and retreat to heartland markets in Scotland and northern England as part of a broader restructure aimed at improving margins and reducing losses.

Who is Cameron Clyne and what role will he play in the Clydesdale Bank restructure?

Cameron Clyne, NAB's chief executive, will personally oversee the restructure. He will step into the role of chairman of Clydesdale Bank and NAB Group Europe when Sir Malcolm Williamson retires, taking direct responsibility for implementing the changes in the UK business.

How much will NAB’s UK restructure cost and how will that affect the group?

NAB said the overhaul of its underperforming UK business will cost about $710 million in restructuring charges and provisions over the next year. Those one-off costs are intended to support a longer-term retreat to core markets and to address current losses.

What board changes has NAB announced for Clydesdale Bank?

As part of board renewal, NAB announced four UK-based finance experts will join the Clydesdale Bank board. Appointments named in the article include David Allvey, former finance director of Barclays, and Barbara Ridpath, former European head of Standard & Poor’s.

What is the significance of Sir Malcolm Williamson stepping down for NAB’s UK business?

Sir Malcolm Williamson, who has chaired the UK board since 2006 and previously held senior roles including CEO positions at Visa International and Standard Chartered, is retiring from Clydesdale Bank and stepping down from National Australia Group Europe. His departure removes an experienced, well-connected executive from the UK leadership during a period of major restructuring.

How has NAB’s UK business been performing financially recently?

NAB’s UK business posted a $36 million loss in the first half, with margins and revenue reported as down, which has driven the need for the current cost-cutting and restructuring measures.

What does the retreat to ‘heartland markets’ mean for Clydesdale Bank customers and branches?

The retreat to heartland markets means Clydesdale Bank plans to focus on core regions—specifically Scotland and northern England—while closing dozens of branches elsewhere. This will likely concentrate resources on areas where the bank has stronger customer bases and reduce its footprint in lower-performing locations.

What should everyday investors watch as NAB implements the UK restructure?

Investors should monitor the announced $710 million restructuring charges and how they affect NAB’s short-term results, updates on branch closures and job cuts, changes to UK revenue and margins, and progress on board renewal under Cameron Clyne’s oversight. These developments will be relevant to assessing whether the restructure improves performance over time.