NATWEST chairman Sir Howard Davies today resisted calls for him to go in the wake of the Nigel Farage scandal, as the bank reported that profits for the year soared to £3.6 billion.
It also hired a top City law firm to investigate its own behaviour.
City analysts indifferent to Farage’s plight said the results showed why Rose had been such as strong leader, even though there is widespread agreement she had to quit for discussing details of his account with a journalist.
Farage wants the entire board to go. Last night Coutts chief executive Peter Flavel went with immediate effect.
Today Davies said the search for a successor to him was underway, but that he would not go until July 2024.
He said: “Like any chairman I serve at the shareholders behest, I intend to stay. The last few weeks have been a painful period for the bank. I have reflected on my position. I regret the way things turned out, we have lost a great leader as a result.”
Law firm Travers Smith has been appointed to probe how NatWest handled the Farage affair. It will also look at how many other accounts Coutts has closed lately, and for what reasons.
That report could lead to more departures if the findings indicate client confidentiality was breached.
The profits were £1 billion higher than a year ago, partly thanks to rising interest rates. They allow for a £500 million dividend payment of which £190 million heads to Treasury coffers.
Paul Thwaite, a long-standing NatWest exec who led the business arm, will step in as CEO for the next 12 months and is a viable long-term replacement for Rose.
On Wednesday, Lloyds Bank admitted that “economic anxiety” had increased for some of its customers, while predicting the UK will avoid a recession.
Today NatWest’s chief financial officer, Katie Murray, said that while arrears during the first six months of its financial year "remain low, we know that people, families and businesses are anxious about their finances and many are really struggling".
NatWest shares have been under intense pressure. Today they rose 3.5p to 243p.
