Peacock springs surprise as she quits as Clydesdale boss

Published on Monday 14 March 2011 21:46

CLYDESDALE Bank chief executive Lynne Peacock yesterday surprised the Scottish financial industry by announcing she is quitting in July, to be replaced by her long-term right-hand man David Thorburn.

Peacock had spent eight years with parent group National Australia Bank (NAB), and seven years leading the UK business, and was only at the weekend reported to be planning a swoop on the 600 branches Lloyds Banking Group has to sell off under European law.

The boss of NAB UK, whose operations posted a 53 per cent jump in full-year profits to 164 million in the year to September, said it had been a "great privilege" to serve the bank "but after almost seven years as UK chief executive I believe that it is time for a change".

Peacock, aged 54, said one of the stand-out memories of her tenure was the successful integration of Clydesdale and Yorkshire banks between 2004 and 2007 "before which we were not in great shape".

That involved the closure of 64 branches at Clydesdale - a quarter of its network. A similar proportion of branch closures occurred at Yorkshire Bank, and roughly 600 Scottish and 600 Yorkshire jobs went.

On the banking sector crisis from 2007 onwards, she added: "Without sounding arrogant, I would like to think I steered the business through the worst conditions in living memory. As we enter a new phase, I feel it is the right time to hand on the baton."

NAB UK's retail deposits jumped 11 per cent to 23 billion last year, when Clydesdale and Yorkshire also walked away from the auction of more than 300 Royal Bank of Scotland branches, eventually outbid by Santander.

NAB UK also exited Ireland ahead of that country's painful crash, selling Northern Bank and National Irish Bank for a combined sum close to 1bn in 2004.

Peacock said that on a personal note she "wanted a break after 35 years of continuous employment", and felt the "less hectic" role of non-executive director might now suit her better. She is already a non-executive with Scottish Water and said she would consider other such roles.

Cameron Clyne, NAB chief executive, said: "Lynne has transformed the UK businesses and ensured they were kept safe and secure during the worst financial crisis in post-war history."

It is believed Peacock, who was on a one-year rolling contract, will receive her contractual entitlement when she goes. Last year she earned a basic salary of 440,000, which, with bonuses and benefits, came to 1.6m.

Thorburn, previously executive director UK, Clydesdale and Yorkshire banks, has been made chief executive designate of NAB UK.It is understood Thorburn, a former chairman of CBI Scotland, will be based primarily in Glasgow, unlike Peacock whose main base was at the group's London office in the City.

Clyne said: "David Thorburn is an experienced executive with extensive business and retail banking experience couple with strong leadership qualities."