NAB CEO resigns, chair Ken Henry to leave, after royal commission criticism

Home Featured NAB CEO resigns, chair Ken Henry to leave, after royal commission criticism

NAB CEO Andrew Thorburn and chair Ken Henry resign in the wake of banking royal commission

Updated

February 07, 2019 17:36:50

National Australia Bank CEO Andrew Thorburn and chairman Ken Henry have resigned from the bank.

Key points:

  • Both men were singled out for criticism by commissioner Kenneth Hayne
  • Former ANZ executive Philip Chronican will be acting CEO
  • NAB shares were put in a trading halt before the announcement

Mr Thorburn will leave at the end of the month, while Dr Henry will stay on until a new, permanent chief executive is appointed.

Former ANZ executive Philip Chronican, currently a board director at NAB, will step in as acting CEO from March 1.

In the banking royal commission’s final report released on Monday, Kenneth Hayne said he had doubts that NAB had learned from its past mistakes and criticised Mr Thorburn’s characterisation of the fees for no service scandal as “nothing more than carelessness”.

NAB shares are expected to return to trade tomorrow morning, after being halted this afternoon ahead of the announcement.

In an interview with the ABC’s Elysse Morgan on The Business on Tuesday, Mr Thorburn said he could not guarantee he would still be the bank’s chief executive by the end of the week.

Dr Henry is scheduled to appear in a live interview with Leigh Sales on the ABC’s 7.30 program tonight.

NAB has consistently underperformed the other major banks, having never recaptured its pre-financial crisis share price highs.

More to come.

Topics:

banking,

stockmarket,

company-news,

royal-commissions,

australia

First posted

February 07, 2019 15:40:48

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