Metro Bank has announced that interim chief executive Dan Frumkin will take the top job at the bank.
Frumkin, who will be a paid a £740,000 salary, joined Metro Bank last September as chief transformation officer from The Bank of NT Butterfield & Son, based in Bermuda.
He took the interim role when former boss Craig Donaldson stepped down in the wake of a major accounting scandal at the lender.
Frumkin will have a hard task reversing the struggling lender’s fortunes. Donaldson’s final year at the helm was overshadowed by a steep sell-off in the firm’s shares which was sparked by the discovery of the accounting error.
Metro Bank’s founder Vernon Hill stepped down last year amid concerns about the lender’s corporate governance.
Meanwhile, earlier this month the bank announced it was undergoing a review of its compliance controls after handling money from Iran and Cuba, breaching strict US and EU sanctions.
“Having spent the past few months getting to know Metro Bank and meeting colleagues across the country, it is clear that their passion and commitment to delivering for customers is second to none,” said Frumkin.
“This is a business with robust foundations and real potential to shake up British banking.”
Metro Bank’s chairman Sir Michael Snyder said: “When we began the search for a permanent chief executive, we were looking for someone who believed in prioritising excellent customer service with a track record in retail banking and business transformation, and the necessary experience to deliver sustainable growth.”
Read more: Metro Bank CEO Craig Donaldson to step down
“We have conducted a comprehensive evaluation from a strong field of candidates and Dan stood out. The combination of three decades of experience across retail banking and the positive impact he has made since joining Metro Bank last year mean we have identified an impressive CEO to take Metro Bank into its second decade.”
Goodbody analysts said: “We believe that the certainty that Metro’s strategy recalibration will be orchestrated by a chief executive who is in the seat on a permanent basis will be greeted by investors”.
Shares fell as much 2.5 per cent after Frumkin’s appointment was announced, but had pared back some losses to stand at 2.15 per cent down by early afternoon.
Who is new Metro Bank boss Dan Frumkin?
Dan Frumkin, who holds British and American citizenship, studied at Syracuse University and Boston University. He began his banking career at US lender Citizens Bank in 1987.
Between 2004 and 2009, Frumkin held roles including chief risk officer and managing director of retail products at RBS, before being appointed head of transition risk at Northern Rock in the aftermath of the financial crisis, where he helped the government restructure the failed bank.
He then helped restructure Parex Bank on behalf of the Latvian government, before joining Bermuda-based bank NT Butterfield & Son. Frumkin worked at NT Butterfield from 2010 to 2019, holding the roles of chief risk officer and then chief operating officer.
Frumkin joined Metro Bank as chief transformation officer in September 2019, before taking over as interim chief executive in January after former boss Craig Donaldson stepped down.