Business

Ulster Bank parent RBS appoints Alison Rose as new chief executive

Alison Rose
Alison Rose Alison Rose

ULSTER Bank parent the Royal Bank of Scotland has appointed Alison Rose as its new chief executive officer.

Ms Rose was the heavy favourite to succeed Ross McEwan as boss of the publicly-owned bank when he departs from the company on October 31.

She is currently the bank's chief executive of its commercial and private banking arm, as well as deputy chief executive of Natwest Holdings.

The appointment will make RBS the only company in the FTSE 100 index with women in its top two executive positions, joining chief financial officer Katie Murray.

Ms Rose told investors it is an "exciting new chapter" for the bank as it faces "economic and political uncertainty" as well as changing consumer behaviour.

Her appointment comes after Mr McEwan led a lengthy turnaround of the business in his five-and-a-half-year tenure as chief.

Mr McEwan announced his departure plans in April and is set to take over as chief executive of National Australia Bank.

Ms Rose said: "It is a huge honour to have been appointed as the new CEO of RBS and I am looking forward to getting started.

"As one of the oldest and most important financial institutions in the UK, we have a key role to play in supporting the economy and championing the potential that exists across the country."

Howard Davies, chairman of RBS, said: "I am delighted that we have appointed Alison as our new CEO. She brings extensive experience and a track record of success from her previous roles at the bank.

"Following a rigorous internal and external process, I am confident that we have appointed the best person for the job.

"I'd like to take this opportunity to thank Ross, on behalf of the board, for his leadership and commitment during his time as CEO and wish him the very best for the future.

"Ross leaves a strong platform for his successor - a bank that has refocused on its core markets in the UK and Ireland and resolved all its major legacy issues, while returning to profitability and paying dividends."

The move makes Ms Rose, who joined the bank 27 years ago as a graduate, the first woman to lead one of the UK's big four banks.

It also made the bank the only FTSE 100 firm to have women in its two top executive roles, joining chief financial officer Katie Murray who joined RBS last year.

Despite her historic appointment, analysts have seen Ms Rose as the "continuity candidate" for a company still facing a plethora of major challenges.

Mr McEwan led the business through a dramatic turnaround over the past five-and-a-half years as he sought to put the firm on a stronger financial footing.

But now Ms Rose must wrestle with the daunting task of continuing the repair of the bank's public reputation after a string of scandals.

The bank has sought to draw a line under scandals, such as accusations of poor treatment of business customers by the company's global restructuring division.

The new chief will also take over as the bank tackles potentially challenging economic conditions, especially if the UK leaves the EU without a Brexit deal.

Another key task for Ms Rose will be managing the transition back to full private ownership, which remains a tricky task given the remaining 62% Government stake in the business.

Russ Mould, investment director at AJ Bell, added: "It is also worth considering that a potential Labour-led administration might look to keep the bank in public hands to use it as a vehicle to support domestic economic growth."

But many feel that Ms Rose's background in the bank's commercial division provides her with ample ammunition to tackle these obstacles head on.

David Madden, market analyst at CMC Markets UK, said: "The finance house is still majority-owned by the UK Government, and Ms Rose's commercial banking background will help her in the top job as the group is getting back to basics."