Tesco (LON:TSCO) has poached the boss or Royal Bank of Scotland’s (LON:RBS) Ulster Bank unit, Sky News has revealed. The news comes after the chief executive of Tesco Bank unveiled plans to step down in February.
Tesco’s share price has slipped marginally lower in London in today’s session, having given up 0.29 percent to 209.00p as of 09:39 GMT. The shares are marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.50 percent lower at 7,693.12 points.
Tesco poaches Ulster Bank boss
Sky News reported last night that Gerry Mallon had resigned as Ulster Bank’s chief executive, based in Dublin, to take on the chief executive position at Tesco Bank. He has been Ulster Bank’s chief executive since 2015, prior to which he ran the UK arm of Danske Bank. One source indicated to the newswire that he is likely to arrive once RBS has lined up a replacement for him. Mallon is also likely to join the main Tesco executive committee when he arrives at the supermarket-owned bank.
Sky News quoted one insider as describing the appointment as ‘a major coup’ for Britain’s biggest retailer, which has been hunting for six months for a successor to Benny Higgins, Tesco Bank’s chief executive for the past decade.
Mallon’s move is also interesting since Tesco Bank was jointly owned by the supermarket chain and RBS for a decade from its inception as Tesco Personal Finance.
His appointment will come after in July, Tesco Bank’s boss Benny Higgins announced plans to step down in February 2018. He joined the challenger bank as CEO during the lender’s move to full ownership by the Tesco in 2008 and was further appointed Group Strategy Director in 2014.