Natwest to appoint insider after Farage crisis

Veteran of the FTSE 100 lender set to take over as chief executive in wake of Coutts debanking scandal

NATWEST is poised to appoint an insider as chief executive in an effort to move on from its costly debanking crisis.

The FTSE 100 bank is preparing to appoint interim chief Paul Thwaite to the role full-time. The board will meet today to approve the decision with confirmation expected tomorrow when Natwest publishes its annual results.

Mr Thwaite, who previously ran Natwest’s commercial bank, has been running the group on a temporary basis since July following the resignation of Dame Alison Rose. Dame Alison was forced out over her role in the scandal surrounding Nigel Farage’s debanking at Coutts, a Natwest subsidiary.

The controversy provoked a political firestorm and regulatory scrutiny of the bank, amid fears of widespread account closures linked to political views.

Mr Thwaite, 51, has spent more than 25 years at Natwest, which was formerly known as Royal Bank of Scotland. His pending confirmation as full-time chief executive was first reported by Sky News.

A Natwest spokesman said: “We do not comment on speculation.”

Natwest’s decision to appoint an insider to replace Dame Alison is likely to prompt comment amid intense scrutiny of the bank’s culture in the wake of the scandal. Mr Farage, who has threatened to sue the bank, has suggested more fundamental reform is needed.

The management transition comes at a pivotal time for Natwest, with chairman Sir Howard Davies retiring in April. He is to be replaced by Rick Haythornthwaite, an experienced board director who has chaired Mastercard, British Gas-owner Centrica and Network Rail. Mr Haythornthwaite has helped oversee the process to find Dame Alison’s replacement.

The Government is also preparing to sell shares in Natwest to the public over the summer, reducing its 35pc stake that is a legacy of a financial crisis bailout. Jeremy Hunt, the Chancellor, has promised the public the chance to buy shares in a “Tel Sid”-style campaign that echoes the privatisations of the Thatcher era.

Mr Thwaite will have to stabilise Natwest’s reputation and its share price. The bank’s stock has fallen around 15pc since the debanking crisis last summer and is down so far this year.

Natwest shares are likely to be offered to the public at a discount in order to encourage demand.

The Government plans to offer them before the end of the summer “subject to supportive market conditions and achieving value for money”, but a sticking point has been the lack of permanent leadership at the bank.

Earlier this month, Charles Donald, head of UK Government Investments, which manages the Natwest stake, told MPS the bank should provide greater clarity on its leadership and move quickly to name a new chief executive.

He said: “They need to provide clarity to the market on their proposals around either confirming the interim chief executive or a process around appointing a permanent chief executive for the market to be comfortable.”

A week ago Natwest hired Emma Crystal, who leads UBS’S sustainable finance unit, to run Coutts. It followed the departure of Peter Flavel, who abruptly left last year over the debanking controversy.

Mr Farage, who had banked with Coutts, was told that his account would be cancelled but said he had not received an explanation. The BBC subsequently wrongly reported Mr Farage was being debanked for “falling below” the Coutts’ wealth requirements.

Mr Farage used a request made under data protection laws to receive internal Natwest and Coutts documents about him. The 40-page dossier revealed staff described the former Ukip leader as a “disingenuous grifter” who promoted “xenophobic, chauvinistic and racist views”. Mr Farage described the comments as “vile”.

Dame Alison was forced to resign after it emerged she had been the source for the original erroneous BBC report. Dame Alison admitted “a serious error of judgment in discussing Mr Farage’s relationship with the bank”, but claimed that “I did not reveal any personal financial information about Mr Farage”.