Sir Howard says the bank now needs stability to serve its customers. Photo: Ben Cawthra/LNP/London News Pictures Ltd
Sir Howard Davis is under pressure. Watching one of the most turbulent weeks in NatWest's recent history, the 72-year-old tried to use the bank's semi-annual results to draw a line under the crisis.
After admitting a “painful period” caused by Nigel Farage's failed account closing and apology clients and investors, the bank's chairman wanted to focus on the future.
He praised Dame Alison Rose as a “great leader” but said her resignation as chief executive was “in the past”, adding: “None of the this does not mean that today we should lose sight of the success of this bank.”
But the heaviness of the last few days seemed to come to light during a phone call with reporters on Friday morning.
When asked how he felt about the government's intervention in Dame Alison's departure earlier in the week, Sir Howard replied: resentment .
“I have no feelings,” said the chairman. “I'm not that kind of guy. I have a rational assessment of our position in the management of the bank.
Sir Howard's rational assessments have certainly come under scrutiny this week after he said on Tuesday that he had “total confidence” in Ms Alison after she admitted she gave the BBC incorrect information about why Coutts shut down Nigel Farage's accounts.
Despite a vote of confidence, Dame Alison resigned less than eight hours later in the middle of the night amid pressure from the government.
Alison Rose Natvest Article promo < p>On Friday, the chairman of NatWest tried to shed some light on how the events of the past two weeks played out behind the scenes.
When asked when he first discussed the leak with Dame Alison, he replied that at that time, it became clear that BBC journalist Simon Jack was coming from the bank and claimed that Farage's account was closed for financial reasons.
< p>“I discussed this with Alison and said that the board needs to get a clear statement from her about what she said in this conversation. We came up with it over the weekend, we met on Monday to discuss it, and that led to this week's events. Those were the terms.”
An independent review by the city's law firm Travers Smith is investigating the circumstances surrounding the BBC article to determine if confidential client information has been leaked or violated by the GDPR.
The terms of the review say Travers Smith is investigating “how NatWest responded to the possibility of confidential information leaving the organization and what actions were taken,” which will likely include an examination of Sir Howard and the board's role in the process.
Despite calls from some quarters for Sir Howard to step down in the wake of Dame Alison and Peter Flavel, Coutts boss, the chairman refused to bow to pressure.
He said “it would be surprising if I didn't reflect on my position” in recent days, but added: “Like any chairman, I serve at the behest of the shareholders, but I intend to continue to chair the board and ensure that the bank remains reliable, stable and capable of serving 19 million customers.
“I think it's important that the bank has some stability and that we maintain our progress.”
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In Thursday Rishi Sunak refused to support Sir Howard, raising questions about how strong his position was.
When asked if he supported keeping Sir Howard in office until next July, the prime minister replied: “It is not about any one person, but about values - do you believe in free speech and that not discriminated against because of your legal opinion?
“Do you believe in privacy, especially in sensitive matters like your financial information? There are values and issues at stake and that is why I said what I did.”
However, on Friday, Sir Howard said: “I understand we have the backing of our major shareholder [Government] and as regulators authorities so that we continue to guide this bank forward.”
This is not Sir Howard's first encounter with controversy. In 2011, he stepped down as director of the London School of Economics (LSE) after admitting that the university's reputation had been “damaged” by a £1.5m donation from Saif al-Islam, Colonel Gaddafi's son.
At the time, he said it was wrong to conclude that “it was almost reasonable” to accept the donation, but added that there were no sanctions for dealing with the Libyan regime.
While the chairs and the rest of the board appear to be here, Sir Howard's departure date of July 2024 is now making succession planning at one of Britain's largest creditors more difficult.
After the departure of Dame Alison Paul Thwaite, temporarily an acting CEO was appointed for an initial 12-month term. This means that her permanent replacement must be appointed at the same time as the new chairman.
Dame Alison Rose was called “a great leader” by Sir Howard. Photo: JULIAN SIMMONDS/JULIAN SIMMONDS. approaching the appointment of a new CEO.
One of the interviewees said: “Given that the interim CEO was given only 12 months, it can be assumed that the new chairman will be appointed much earlier.”
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Sir Howard also said that, according to the source, he expects Thwaite to run for permanent replacement for Dame Alison.
A NatWest insider revealed that a new chairman will be appointed in time to take part in the selection of the next CEO. However, they added that a person could do so while not yet formally in office, meaning that Sir Howard could still remain in office until next July.
Nigel Farage argues about the bank
After watching after a disastrous week at the bank in which he ended up clinging to his job, Sir Howard on Friday sought refuge in light humor.
Speaking of Thwaite, the chairman said, “I can say that he is a man almost entirely of common sense. Almost, I must say, because he is a fan of Everton, which clearly indicates some irrationality in his composition.
Like his beloved Manchester City, which over the past 15 years has experienced a complete twist . years, Sir Howard will hope the worst is over and a new management team can lift the scandal-hit lender out of the depths of this week.
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