Burt steps down at HBOS

PETER Burt, deputy chairman of Edinburgh banking giant HBOS, is to retire from the group in the new year.

Burt, 58, who was Bank of Scotland’s chief executive prior to its merger with Halifax in April 2001, will stand down on 6 January - 28 years to the day he joined the company.

Despite speculation that he has been pushed to the margins of the merged set-up, Burt said he had enjoyed his 18 months at HBOS more than any other period of his career.

Burt, who was tasked with overseeing the merger of the two banks, added that by the time he stands down the businesses would be fully integrated. He continued: "I’ve never really understood this talk of me being marginalised in the group.

"If people think that my comments to the board have been ignored, then they are completely wrong.

"If that had happened to me - or anyone else on the board - then the merger would not have been a success."

Burt added: "One of the measures of how well this merger has gone is how few senior people have left the group during the integration - you can count them on one hand."

Burt joined the Bank of Scotland in 1975, working initially in the international and oil and energy departments. He became head of the international division in 1985, then treasurer and chief general manager in 1988. In 1996 he was appointed group chief executive - the post he held until the merger.

During his tenure, Bank of Scotland’s profits jumped from 157.9 million in 1988 to 1.077 billion in February 2001 - the last financials before the merger was completed.

When he took on the job, Bank of Scotland’s share price stood at just 232p against yesterday’s HBOS share price close of 705p.

Burt is understood to have been disappointed when Halifax chief executive James Crosby won the top job in the new group following the merger.

Crosby said yesterday: "Peter’s biggest legacy to HBOS is a very strong Bank of Scotland; we are fortunate to have that inheritance. I am sorry to see Peter retire and will miss his good counsel."

In his retirement Burt, a non-executive director of Shell, hopes to take on more boardroom roles. But he insists he has no plans to become a full-time executive again. He was linked with a post at New York-based investment bank Gleacher & Co earlier in the year.

Burt, who serves on a number of committees for the Royal & Ancient Golf Club of St Andrews, said he plans to play more golf. He is a member at Muirfield and Gullane.