There’s a big overhaul in the works at the UK’s NatWest Group.
New CEO Paul Thwaite is changing the leadership of the historic bank by ridding it of “unnecessary complexities” as one of Britain’s best-known banks seeks to redefine itself.
On Tuesday, Thwaite made a series of management changes, including the appointment of a new chief operating officer and the axing of the group’s chief legal officer, according to a memo provided to Fortune by NatWest. Other notable changes include the appointment of 40-year veteran Robert Begbie as permanent head of commercial and institutional banking.
The total executive team will be reduced to 10 people from 15 previously, the bank said.
According to Thwaite, “customer focus and simplification must start at the top of the bank” so that the bank can focus on adding more value where the need arises and reduce “unnecessary complexity”.
In a statement, NatWest says the new structure will make it operate as a “simpler and more integrated business”.
The group received significant updates this week: Just days before its downsizing at the top level, the British government reduced its controlling stake in the bank to below 30% (the stake had been as high as 84% at one time). point). Last May, the taxpayers’ share of NatWest was reduced to less than 40%. The slow and steady decline in public ownership could lead to further share buybacks in the coming months and a total government exit by 2026.
Thwaite took over as head of NatWest permanently in February, after a scandal over the leaking of sensitive information regarding Brexit leader Nigel Farage led to his resignation. The row has damaged NatWest’s reputation as one of the UK’s leading banks.
Among the many tasks facing Thwaite as he takes up his new role is navigating a difficult macroeconomic environment characterized by high interest rates and inflation in Britain.
Bright side? NatWest performed strongly in 2023 as profits rose 20% from a year earlier and shareholder returns remained strong. For his first year, Thwaite plans to double and expand the bank’s core business. And although taxpayers’ stake in NatWest is shrinking, the bank still boasts a customer base of 19 million people across Britain.