New look board behind the turnaround at RBS

Steve Dinneen
Follow Steve
The Royal bank of Scotland chairman yesterday pinned the bank’s change in fortunes on the strength of its new board.

Philip Hampton said the people who brought the institution to the brink of collapse have all been culled. The board, which has stemmed RBS’ losses at £3.6bn after it lost £24bn the year before, has changed beyond recognition since the onset of the crisis.

The group headed by Fred “the Shred” Goodwin have almost all left the business as Stephen Hester assembles a team he says will lead the bank through its financial troubles.

Hester, says the board, has “met every target” since taking the helm.

The final board members remaining from before the financial meltdown, Archie Hunter and Gordon Pell, have announced they will step down.

Pell, who was formerly group director of Lloyds TSB UK Retail Banking before joining NatWest as a director, will step down as deputy chief executive.

The position will not be filled but many of his responsibilities will be taken on by Australian Brian Hartzer, chief executive of RBS’ British retail arm.

Hunter will follow him out of the door. The former president of the Institute of chartered accountants has sat on the board since 2004.