NatWest Nigel Farage: Boss of Coutts bank, Peter Flavel, that shut down Farage account to step down

Peter Flavel will leave as chief executive of Coutts by mutual consent with immediate effect

The boss of bank Coutts that shut down Nigel Farage’s bank account, Peter Flavel, will step down immediately, its owner NatWest Group has said.

It follows the resignation of NatWest’s chief executive Dame Alison Rose in the early hours of Wednesday. The bank’s interim boss, Paul Thwaite, said the resignation was agreed by mutual consent and is the “right decision for Coutts and the wider group”.

Mr Flavel is expected to be replaced by Mohammad Kamal Syed, who is the head of asset management at the bank, on an interim basis until a permanent successor is found.

Coutts' chief executive Peter Flavel. Picture: Daniel Leal/PA Wire

The high-net-worth bank has been at the centre of a row sparked by former Ukip leader Mr Farage, after he said his account was shut down because it did not agree with his political views.

Mr Flavel said: “I am exceptionally proud of my seven years at Coutts and I want to thank the team that have built it into such a high-performing business. In the handling of Mr Farage’s case, we have fallen below the bank’s high standards of personal service.

“As CEO [chief executive officer] of Coutts, it is right that I bear ultimate responsibility for this, which is why I am stepping down.”

Mr Syed is the “ideal person to lead Coutts through this difficult time”, the banking group said. Dame Alison’s departure earlier in the week came after she had admitted to a “serious error of judgment” by discussing with a BBC journalist Mr Farage’s relationship with Coutts.

Mr Farage had presented evidence that his account with Coutts had been closed partly due to his political beliefs conflicting with the bank’s values. Ministers moved to introduce a number of reforms last week amid concerns that people were being denied crucial banking services.

Mr Farage tweeted it was “only a matter of time” before Mr Flavel stepped down. He said he wrote to him twice before “going public” with the issue, but did not get a reply.

Senior bosses at NatWest Group are meanwhile set to face scrutiny from shareholders following the dramatic fallout. NatWest will follow rivals in unveiling its half-year financial results on Friday.

But the earnings report comes at a time of volatility for the bank with the two bosses resigning and the group’s board facing pressure to explain the events leading up to the fallout.

Remaining top executives could face questions over the handling of the situation and how it plans to move forward.

The bank, whose largest owner is the Treasury, is expected to reveal an operating pre-tax profit of £3.3 billion for the latest half year, up from £2.6bn in the same period last year.

It could also see its provisions for loan losses surge to £264 million from £70m in the previous quarter, as it braces for more borrowers struggling with debt repayments.

It follows rival lenders Lloyds Banking Group and Barclays reporting a jump in their half-year profits as they continue to benefit from interest rate rises.