The National Australia Bank (NAB) has outlined the reasons behind the organisational restructure announced yesterday, claiming short-term investment benefits is not one of them.
NAB group CEO Cameron Clyne told a press conference yesterday that the decision to re-structure the bank's executive team, including the departure of MLC CEO Steve Tucker, is "not about investors."
"This is simply a logical re-structure and refresh of our Australian strategy," Mr Clyne said, adding that it is a core part of the bank's $800 million five-year cost saving target.
"Largely it is in response to some legacy issues and problems relating to our UK business," he said. "The suggestion that this is in some way to 'appease investors' doesn't make much sense because it doesn't relate to the legacy issues in the UK, and we're certainly not going to 'short term' our core franchise in order to try and get a short-term reaction to what is a legacy issue in the UK."
Mr Clyne said the reduction of NAB's product offering, also announced yesterday, would provide a "simpler, easier to access product suite" and was responsive to changes in technology, the ageing population and the "emergence of Asia."
While NAB's product offering is being consolidated, Mr Clyne said there will continue to be "many distribution channels."
He said the bank's wealth franchise was well-prepared to take advantage of changes in the industry, including the Future of Financial Advice (FOFA) reforms, and is "eager to improve performance" in this sphere.
Under the changes, long-serving MLC chief executive Steve Tucker departed after 25 years at the group, with his role taken by by Andrew Hagger, currently group executive, people, marketing and communications.
"[Incoming wealth CEO Andrew Hagger] will have more to say about our wealth franchise once he has had some time in the job," Mr Clyne said.
Current group executive of wholesale banking, Rick Sawers, will take the role of group executive, product and markets. Lisa Gray, currently group executive, personal banking, will take on the new role of group executive, enterprise services and transformation.
Group executive, group business services, Gavin Slater, will take on the role of group executive, personal banking. Joseph Healy will remain in the role of group executive, business banking, with the additional responsibilities of Asia, private banking and financial institutions group.
Michaela Healey, currently group executive, group governance and legal, will take on the expanded role of group executive, people, communications and governance. Bruce Munro will continue in his role as chief risk officer, while Andrew Thorburn, currently responsible for NZ Banking will also remain in his role.
NAB also announced Mark Joiner, executive director, finance, would retire by the end of 2013 with a search for a replacement to be conducted both internally and externally, although the intention is for him to continue as chairman of JBWere.
The changes will take effect from April 2013 to enable an orderly transition, with any changes to NAB's financial reporting not expected to take effect until the 2014 financial year.
