McEwan appointed RBS chief
Mr McEwan, 56, will replace Stephen Hester, the taxpayer-backed lender said on Friday as it swung into profit in the first half. Net income was £535 million ($907 million), up from a £2 billion loss in the corresponding period a year earlier.
Mr McEwan, a New Zealander, who heads RBS' retail operations in the UK, had emerged as the leading candidate to take over from Mr Hester, who announced his resignation in June.
Mr McEwan joined RBS last August, having run CBA's retail banking arm for five years.
While at CBA, he was interviewed for the top job that went to Ian Narev.
It is believed a recent presentation by UK Financial Investments chairman Robin Budenberg to the RBS board had helped swing the decision Mr McEwan's way. UKFI manages the UK government's 81 per cent stake in the bank.
At the presentation, Mr Budenberg was critical of RBS' investment bank, and raised questions over its capital deployment. It is thought that presentation was one of the final blows to Mr Hester's tenure.
Mr Hester resigned two months ago following pressure from the UK Treasury, amid concerns about the direction of the bank and his determination over the strategy for RBS' investment banking arm.
Earlier this year Mr McEwan expressed surprise at the bad shape of the UK's banking industry and said the sector was behind in technology.
With the UK once regarded as a leader in global banking, Mr McEwan said banks had fallen behind since the global financial crisis.
With more than 2200 branches, RBS' retail business is twice the size of CBA's.
In taking the role as RBS' head of retail banking Mr McEwan stepped into the position made vacant by banker from Australia, Brian Hartzer.
Mr Hartzer, a former ANZ executive, is now heading Westpac's Australian businesses.
At CBA, Mr McEwan was largely responsible for implementing the strong customer service drive of former chief Ralph Norris.
Frequently Asked Questions about this Article…
Ross McEwan is a New Zealand banker who was appointed chief executive of the Royal Bank of Scotland (RBS). He previously ran the Commonwealth Bank of Australia’s (CBA) retail arm for five years and joined RBS last August to head its UK retail operations. For investors, his appointment signals a shift in leadership and strategy at RBS given his retail banking background and experience implementing customer-service initiatives at CBA.
Ross McEwan was named the new chief executive of the Royal Bank of Scotland, replacing Stephen Hester. The appointment followed pressure from the UK government and discussions about the future direction of RBS, particularly around its investment-banking operations.
Stephen Hester resigned amid pressure from the UK Treasury over the bank’s direction and strategy for its investment-banking arm. A presentation by UK Financial Investments (UKFI) chairman Robin Budenberg, which criticized RBS’s investment bank and capital deployment, helped influence the board toward Ross McEwan, who was seen as a leading candidate.
RBS swung into profit in the first half, reporting net income of £535 million (about $907 million), a significant improvement from a £2 billion loss in the same period a year earlier. This turnaround was noted in the announcement of McEwan’s appointment.
UKFI manages the UK government’s 81% stake in RBS. Its chairman, Robin Budenberg, made a presentation to the RBS board that was critical of the bank’s investment-banking unit and its capital use; that presentation is believed to have been influential in the decision to appoint Ross McEwan.
McEwan has expressed surprise at the poor shape of the UK banking industry and said banks there were behind in technology. He also commented that the sector had fallen behind since the global financial crisis — remarks that suggest he may prioritize modernization and technology in his leadership approach.
RBS’s retail business has more than 2,200 branches, which the article notes is about twice the size of CBA’s retail footprint. This scale reflects RBS’s significant presence in UK retail banking.
Ross McEwan stepped into the RBS head of retail banking position that had been vacated by Brian Hartzer, an Australian banker and former ANZ executive. Brian Hartzer is now heading Westpac’s Australian businesses.
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