NAB in turmoil at the top

THE former head of ANZ Australia has been charged with steadying the ship at National Australia Bank as turmoil engulfs the group’s upper echelons.

In an explosive development at the besieged bank, NAB announced late yesterday that it was parting ways with its chief executive and chair in quick succession.

NAB chief Andrew Thorburn will leave in 20 days while chair Ken Henry will exit once a permanent successor to Mr Thorburn has been appointed.

It comes just two days after Mr Thorburn said he was “more determined than ever” in his role leading the bank, and he felt safe in his job despite being the target of stinging criticism in the report from the royal commission.

Philip Chronican, who previously ran ANZ’s operations in Australia, will step into the chief executive role on an acting basis in three weeks.

Mr Chronican joined NAB as a non-executive director in 2016, a year after stepping down at ANZ. Now 62, he had been widely regarded as a potential successor for former ANZ chief Mike Smith, although played down his interest in that role.

In a statement, Mr Thorburn yesterday said he had a “number of conversations” with Mr Henry this week.

“I acknowledge the bank has sustained damage as a result of its past practices and comments in the royal commission’s final report,” he said.

“As CEO, I understand accountability. I have always sought to act in the best interests of the bank and customers and I know that I have always acted with integrity. However, I recognise there is a desire for change. As a result, I spoke with the board and offered to step down as CEO, and they have accepted my offer.”

In his scathing final comments, commissioner Kenneth Hayne said NAB “stands apart from the other three major banks” and he singled out the leadership duo for criticism.

“I am not as confident as I would wish to be that the lessons of the past have been learned,” Mr Hayne said.

“I thought it telling that Dr Henry seemed unwilling to accept any criticism of how the board had dealt with some issues.”

With regard to a fee-for-noservice scandal, Mr Hayne said he thought it telling that Mr Thorburn “treated all issues of fees for no service as nothing more than carelessness combined with system deficiencies”.

The exits of Mr Thorburn and Mr Henry follow the departure last year of NAB’s consumer and wealth management chief customer officer, Andrew Hagger, who had been criticised for withholding important information from regulators on the fee-for-noservice saga.

Dr Henry said yesterday that he and the board recognised change was necessary.

“The timing of my departure will minimise disruption for customers, employees and shareholders,” he said.

“This is, naturally, a difficult decision but I believe the board should have the opportunity to appoint a new chair for the next period as NAB seeks to reset its culture and ensure all decisions are made on behalf of customers.”