NAB in ‘safe hands’ with Irvine at the helm

SYDNEY: National Australia Bank (NAB) Ltd said Andrew Irvine will replace Ross McEwan as chief executive officer (CEO) as the country’s second-largest lender opts to promote a prominent internal leader to the top job.

Irvine, 48, who will become CEO on April 2, has run the firm’s business and private banking division since 2020. McEwan, 66, will retire from executive roles after helming the bank for more than four years.

“NAB seems in safe hands” after the appointment, said Matt Ingram, senior industry analyst at Bloomberg Intelligence in Sydney.

NAB chairman Philip Chronican as well as analysts and shareholders pointed to Irvine’s experience leading Australia’s largest business bank franchise, with many also highlighting his international experience and knowledge of risk management.

Prior to joining NAB, Irvine, a British-Canadian dual citizen, was head of Canadian business banking at the Bank of Montreal. He has a degree in business management and commerce from King’s College London and an MBA from Western University in Ontario, Canada.

“Andrew is well suited to take NAB into its next chapter of growth and performance for our customers, colleagues and the communities we serve,” Chronican said in yesterday’s statement.

“Internal succession at NAB is welcome after Ross McEwan concludes a very strong innings,” said Matthew Wilson, an analyst at Jefferies LLC.

“He delivered the franchise potential with consistency, simplicity and prudence, leaving NAB in the best shape it’s been in well over 20 years.”

McEwan steadied the ship and delivered robust results at a critical juncture, he added.

McEwan forged his reputation as a turnaround king by reviving the fortunes of Royal Bank of Scotland Group Plc when he took control of the British lender in 2013.

After returning that bank to profit, he came to NAB in 2019 as the Australian banking industry worked to restore its credibility after a misconduct inquiry blasted banks for a runaway culture of greed.

NAB shares dipped 1% in Sydney, while the S&P/ASX 200 Index added 0.7%. The firm’s stock returned about 60% under McEwan’s leadership, outpacing gains in the broader equities index and the wider financials gauge.

“I’m not completely surprised that they’ve taken an internal hire, as they’ve had a good few years to review his performance,” said Jamie Hannah, deputy head of investments and capital markets at Van Eck in Sydney, who holds NAB shares.

“He was no doubt a top performer in his current role and internally well respected. Hence, the board believed he was the best candidate.” — Bloomberg