National Australian Bank (NAB) the parent of Clydesdale and Yorkshire, had opted out of the United Kingdom ahead of a stock listing as Clydesdale has become a drag in its sinking financial ship due to a large number of PPI complaints.
The bank has hired Korn Ferry to identify the successor to former UK boss David Thorburn, who had resigned ahead of a stock market listing that would indicate the rock-bottom profitability of the firm.
NAB said that Thorburn would be leaving later this year and they would be recruiting a new chief executive.
NAB’s UK market has become a big thorn on its side because of its ongoing provisions for payment protection insurance and interest hedging product troubles for smaller companies. It had a £450 million PPI bill and £250 million interest rate swap recompense, leading to a fall in its profitability.
According to NAB, Clydesdale needed a new leadership to turn around its market.
Meanwhile, Thorburn claimed that his efforts had put Clydesdale and Yorkshire banks “in much better shape.”
“I believe that the business requires a five-year commitment from me, particularly as NAB looks at options to accelerate the exit from its UK banking business and I felt this was a significant undertaking,” said former boss Thorburn.